Britain Has Just Two Days’ Worth of Gas Stored Up – Sparking Fears of a Supply Shortage as Iran Shuts the Strait of Hormuz and Bombards Gas and Oil Refineries
Britain’s gas tanks are running on fumes with just two days’ supply left, as Middle East attacks knock out the world’s biggest gas plant and Iran shuts a crucial shipping route. The Mailhas more.
The UK’s gas reserves have dwindled from 18,000 GWh last year to 6,700 GWh, enough for just 1.5 days of demand, according to new data published by National Gas. There is a similar quantity stored as liquefied natural gas (LNG).
Europe is much better prepared to weather fluctuations in supply, with several weeks’ worth of gas stored up.
Traders have been exploiting the UK’s situation by charging it a premium price on gas, knowing it has no choice but to outbid its European competitors. The UK is now paying the highest wholesale gas price in Europe.
Disruption to the gas market is driven partly by the near-total closure of the Strait of Hormuz, through which around 20% of the world’s natural gas and oil flows, and also by the shutdown of production in some places.
Qatar announced at the beginning of the week it had suspended production at Ras Laffan, the world’s largest natural gas facility, after it came under Iranian bombardment.
Meanwhile, oil prices are set to soon hit $100 a barrel and that could rise to $150 if the war drags on, industry experts warned. …
The UK used to have up to 12 days worth of gas in storage, but the system collapsed after successive government ministers pulled its funding.
National Gas data showed that gas stores were at 18% of their former capacity on Friday, while LNG stores were just over half full. …
Meanwhile, fears of a significant spike in oil prices are also growing, driven largely by disruption to the flow through the Strait of Hormuz.
Iran’s Revolutionary Guard vowed to “set ablaze” any Western tanker attempting to sail through the strait – and hundreds have since amassed at either end.
Goldman Sachs warned that the current drop in the Middle East’s oil output is 17 times larger than the peak drop in Russia’s output after it invaded Ukraine. …
Experts have told households in the UK to expect to be “hit from multiple sides” by price rises driven by the Middle East conflict. …
Any price rise in household bills would hit in July, when a new energy price cap will be set.
Energy infrastructure has been a key battleground of the current conflict, with Israel overnight blitzing oil facilities in Iran.
Meanwhile the political self-regarding elites shit down power stations and glory in seeing them destroyed, the cancel oil and gas exploration licences and tax the hell out of North Sea operations. They refuse to allow fracking.
we are standing on a vast store of wealth but the elites prefer us to be poor.
Britain gets its oil from Norway and the US. Most of the Saudi oil ports are in the Persan Gulf, except there are two pipelines that can deliver petrol and natural gas to the Red Sea ports. As far as Iranian oil is concerned, 90% goes to China and the rest goes to Syria, UAE and Venzuela.
“Meanwhile, oil prices are set to soon hit $100 a barrel and that could rise to $150 if the war drags on, industry experts warned. …”
And…
“Traders have been exploiting the UK’s situation by charging it a premium price on gas, knowing it has no choice but to outbid its European competitors.”
Presumably China uses the oil it buys from Iran to power the cargo vessels that bring all the goods they manufacture to the West. So if the price of oil increases, so does the costs of shipping.
You are right but an important bit of information on Germany is missing. If their level falls to 20% then gas has to be reserved for domestic use to ensure the grid stays full. Industry has to be shut down and that was where they were heading as LNG ships were iced up in the Baltic.
Gezza England
1 month ago
You think after all the years of Iranian state terrorism somebody would have dug a canal to bypass the Strait.
The US starts the Ukraine civil war with their Maidan coup of 2014.
The US scuppers any Ukrainian peace deal.
The US keeps the war going by supplying weapons.
The US orders the destruction of the Nord Stream 2 pipeline.
The US demands the world sanction cheap Russian fuel.
The US actions cause economic decline in Europe and elsewhere apart from the US.
The US sells billions of dollars’ worth of expensive oil and LNG to Europe.
The US then attacks Iran creating a further surge in US LNG production and profits.
Just follow the money.
Russia offered Europe a peace treaty whereby they would NOT attack European countries which was never Russia’s intention any way.
Europe chose not to sign it and ignore cheap Russian fuel.
This is all to do with the US plan to Balkanize Russia and contain China to maintain US hegemony and their Unipolar world.
Is there anyone left who doesn’t think our politicians hate us?
They go on and on about ordinary people being xenophobic and hankering after the empire; yet they can’t stand the thought of not being global leaders in something.
How about seeing to the needs of your own people rather than prancing about at globalists meetings.
RTSC
1 month ago
Jolly good.
The Eco Nutters and the unthinking masses who go along with the Net Zero nonsense may get a very valuable lesson in what “just stop oil and gas” will really mean.
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Meanwhile the political self-regarding elites shit down power stations and glory in seeing them destroyed, the cancel oil and gas exploration licences and tax the hell out of North Sea operations. They refuse to allow fracking.
we are standing on a vast store of wealth but the elites prefer us to be poor.
The Uniparty has to go.
Are you being metaphorical describing what the elites have done to power stations? 😀
Although, to be fair, they may as well have been doing so. Tossers.
Seems quite accurate.
So, how is milliband’s policy aging?
Gonna have to blow a bit harder you f’ckin’ imbecile.
He is getting the results he wanted.
Should read “:shut” of course.
If only there were some nearby source of gas. Somewhere like the North Sea for example.
No, there’s none there. It’s all the other side of the line in Norway’s territory.
Britain gets its oil from Norway and the US. Most of the Saudi oil ports are in the Persan Gulf, except there are two pipelines that can deliver petrol and natural gas to the Red Sea ports. As far as Iranian oil is concerned, 90% goes to China and the rest goes to Syria, UAE and Venzuela.
Gas not oil!
“Meanwhile, oil prices are set to soon hit $100 a barrel and that could rise to $150 if the war drags on, industry experts warned. …”
And…
“Traders have been exploiting the UK’s situation by charging it a premium price on gas, knowing it has no choice but to outbid its European competitors.”
The market is a world market. The oinly way to insulate us is to extract our own.
Quite – It is national econimcs 101
Presumably China uses the oil it buys from Iran to power the cargo vessels that bring all the goods they manufacture to the West. So if the price of oil increases, so does the costs of shipping.
So it was a good idea de-industrialising and allowing China to make evrything we used to?
Might have two days above ground, but 300 years below ground. Get drilling.
“Europe is much better prepared to weather fluctuations in supply, with several weeks’ worth of gas stored up.”
No it isn’t!
Germany: 21% stored gas. Typical levels in recent years have been higher, 30–40% in milder periods, or 50%+ in well-stocked years.
Rest of EU: around 27%, below the 5-year average of 41%.
You are right but an important bit of information on Germany is missing. If their level falls to 20% then gas has to be reserved for domestic use to ensure the grid stays full. Industry has to be shut down and that was where they were heading as LNG ships were iced up in the Baltic.
You think after all the years of Iranian state terrorism somebody would have dug a canal to bypass the Strait.
Don’t panic! Renewables have been producing at least 15% of our electricity requirements all day……
Overcast, no isobars, Frogs need their nuke output…
The US starts the Ukraine civil war with their Maidan coup of 2014.
The US scuppers any Ukrainian peace deal.
The US keeps the war going by supplying weapons.
The US orders the destruction of the Nord Stream 2 pipeline.
The US demands the world sanction cheap Russian fuel.
The US actions cause economic decline in Europe and elsewhere apart from the US.
The US sells billions of dollars’ worth of expensive oil and LNG to Europe.
The US then attacks Iran creating a further surge in US LNG production and profits.
Just follow the money.
Russia offered Europe a peace treaty whereby they would NOT attack European countries which was never Russia’s intention any way.
Europe chose not to sign it and ignore cheap Russian fuel.
This is all to do with the US plan to Balkanize Russia and contain China to maintain US hegemony and their Unipolar world.
Project for the New American Century. It’s all in there.
Precisely. And US policy papers like 2009 Brookings’ “Which Path to Persia”
Bugger! If only we had massive gas fields…
Is there anyone left who doesn’t think our politicians hate us?
They go on and on about ordinary people being xenophobic and hankering after the empire; yet they can’t stand the thought of not being global leaders in something.
How about seeing to the needs of your own people rather than prancing about at globalists meetings.
Jolly good.
The Eco Nutters and the unthinking masses who go along with the Net Zero nonsense may get a very valuable lesson in what “just stop oil and gas” will really mean.
Hm. I think they will say, “See?! THIS is why we need to stop using oil and gas!”
I fear you’re correct. Just like they use any kind of weather – wet or dry, cold or hot – to “prove” that humans are changing the climate.