UK Gas Market Overview

Overview of the UK Gas Market

Helping keep your business one step ahead

The UK's gas market is comparable to any other competitive commodity market- i.e. prices reflect the capability of supply to satisfy demand at any particular time. Whenever demand for natural gas increases, and prices rise appropriately, producers will react by raising their exploration and output capabilities. As a result, production will over time have a tendency to rise to meet the stronger demand. However, in contrast to many products, where production can be accelerated and maintained in a matter of several hours or days, boosts in natural gas production to meet escalating demand need significantly longer lead times.

Considering that the UK natural gas market is so heavily dependent on the interaction of supply and demand, it is crucial to obtain an understanding of the factors that affect these two components. The last 12 months have proved to be extremely volatile for the UK natural gas market with whole price increases of around 24%. Dwindling North Sea gas production combined with the lack of storage capacity in the UK and an increasing reliance on imported foreign gas have had a strong influence on prices this year.

If your business is to remain competitive , getting the best possible gas tariff and making sure you stay on it year after year will become even more important than it is today.

For wholesale gas prices and a weekly summary of current conditions in the UK gas market visit gas wholesale prices.