Australia gas strike starts - what are the implications?

mmmmikey

See this news story:

https://www.bbc.co.uk/news/business-66749700

I thought we'd got over this. Anyone want to hazard a guess about what the implications are for UK energy prices over the winter?

la531983

Well prices are currently 11% up today (and rising), nowhere near the 30-day high though so no major concerns yet.

Dolor

The implications are that we could see an increase in LNG prices as Asia (in particular China) looks to the Middle East for its supplies in competition with Europe. 

‘ In 2022, UK LNG imports hit a record high of 25.6 bcm, representing 45 per cent of UK natural gas imports.’

Source: UK Gov

The problem with LNG is that it cannot be ordered too far into the future as LNG carriers have to be offloaded on arrival either for use in the Grid or into storage. It also has a higher CV than UK permitted limits so LNG has to be mixed with lower CV gas prior to delivery.

If we have a cold winter then a prolonged strike could have cost implications for the consumer. The price to watch is Octopus Tracker gas.