UK to receive first US gas as exports to hit record high

05 July 2017

05 July, 2017
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The UK is set to receive its first delivery of natural gas from the US later this week, ICIS analysis showed on Wednesday morning. The sighting of the inaugural cargo of liquefied natural gas (LNG), from the US comes on the same day as UK exports of gas to the European mainland was set hit an all-time record high.

The shifting supply and demand of UK gas flows comes just weeks after the permanent closure of the country’s most important storage facility. As a result, UK utilities and energy companies are now having to alter the way they source and store their gas.

The price of wholesale gas for delivery in the UK on Wednesday was 37.1p/th, according to ICIS data. This was 2.1p/th cheaper than on the European mainland, providing a clear incentive for gas companies to export their gas.

ICIS analysis of LNG shipping routes show the Maran Gas Mystras vessel should arrive in Kent’s Isle of Grain terminal on 8 July. The vessel is able to carry 1,045GWh of gas.

Screenshot source: LNG Edge

Wednesday should also see the Interconnector pipeline – which runs from Bacton in Norfolk to Belgium’s Zeebrugge – export 647GWh of gas, beating the previous record set on 8 April 2011, when 644GWh was sent to mainland Europe.

The Maran Gas Mystras is able to carry enough gas to supply around 50% of Wednesday’s national gas demand. The exports through Interconnector are almost around a third of national demand.

Gas companies must store their additional summer supply so that they can use it during the high-demand winter.

The closure of Rough has resulted in around 70% of the UK’s gas storage capacity being removed.

Prior to last month’s decision by Centrica to completely halt operations at the facility, Rough was already undergoing a year-long temporary shut-down, in an effort to undertake vital repairs.

The total closure of Rough had brought the UK’s gas security of supply back into the spotlight, particularly given an increasing amount of gas is delivered from Qatar in the form of LNG. However, the delivery of a cargo from the US – which is fast-becoming a major global producer – should dampen such fears.

For media inquiries, contact:

Tom Marzec-Manser
Editor – European gas
tom.marzec-manser@icis.com
0207 911 1964

Ed Cox
Editor – Global LNG
ed.cox@icis.com
0207 911 1772

Tara Sabanandan
Marketing Manager
T: +44 (0) 207 911 1713
tara.sabanandan@icis.com

 

About ICIS

ICIS is the world’s largest petrochemical market information provider, with divisions spanning energy and fertilizers. Our aim is to give companies in global commodities markets a competitive advantage by delivering valuable information and analytics tools which enable our customers to identify and react to opportunities in markets which are constantly evolving. We have more than 30 years’ of experience in providing pricing intelligence and news, forecast data, market analytics and independent consulting to buyers, sellers and analysts.

With a global staff of more than 600, ICIS has employees based in London, Houston, New York, Singapore, Dubai, Shanghai, Guangzhou, Beijing, Mumbai, Tokyo, Karlsruhe, and Milan. ICIS’ team of journalists is engaged in reporting market prices and news, and ICIS is fully committed to upholding the highest journalistic principles of verification, corroboration and authentication. ICIS has a compliance framework that along with its methodologies and business processes adheres to the requirements of the IOSCO PRA Principles.

ICIS is a division of Reed Business Information, part of RELX Group.

 

About Reed Business Information

Reed Business Information (RBI) is a fast-growth provider of information and analytics, solving critical problems for businesses globally. Our strong global products and services hold leading positions across a wide range of industry sectors including finance, agriculture, petrochemicals and aviation where we help customers make key strategic decisions every day. RBI is part of RELX Group, a global provider of information and analytics for professional customers across industries. http://www.reedbusiness.com

 

About RELX Group

RELX Group is a global provider of information and analytics for professional and business customers across industries. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs approximately 30,000 people of whom almost half are in North America. RELX PLC is a London listed holding company which owns 52.9% of RELX Group. RELX NV is an Amsterdam listed holding company which owns 47.1% of RELX Group. The shares are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX and RENX. Total market capitalisation is approximately £33.1bn|€37.7bn|$44.3bn. www.relx.com

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