Back in the days when the UK was enough for organic gas few variables affected gas prices. They have been weather and need; today, the United Kingdom gas economy has gotten more complicated and many factors have an immediate impact on costs.
With the fall of North Sea manufacturing the United Kingdom moved from being self sufficient and also an exporter for a net importer. This has triggered a lot of modifications to the UK gas market, largely in company and business gasoline costs volatility. Since 1998 when the initial pipeline between the UK and Europe was started United Kingdom costs were mechanically hooked on European petroleum indexed prices. Ever since that time, UK costs were determined by leveraged trades. Fundamentally if oil prices increase so does UK costs.
Lately a new factor has come into play that introduced a more international element to business and business gasoline costs, the imports of LNG (liquefied natural gas) cargoes. According to market experts, over the years LNG imports may account for 50 percent of total United Kingdom gas distribution which can make UK prices compete with Asian and American markets. The greatest issue with LNG imports today is where to keep it quite a few LNG import terminals are under construction, together with two new big terminals in Wales due to be finished later this year and additional growth at Isle of Grain close London.
Climate and need have their influence in company and business gasoline rates. However, this winter gas dealers saw another situation; with temperatures way below seasonal average which forced gas for heating intake to sky high levels, wholesale gas costs dropped.
Normally using the colder weather UK prices often grows because of a growth in need. This winter a continuous source from Norway and the Netherlands and robust LNG imports maintained costs at reduced levels. Before trading gasoline in the UK Market was fairly straightforward, now things are becoming more complicated and we must keep tabs on many facets so as to supply the lowest deals to our costumers said a company gas agent.