is Poland in Russia again? I thought those days had gone.
Or do you mean "EU is moving gas within the EU?"
Energy bill to double from next month
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is Poland in Russia again? I thought those days had gone.
Or do you mean "EU is moving gas within the EU?"
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Can you provide some proof this is down to brexit....
Last time I saw the news the EU was in just as much dire straights, in fact it was the Spanish government that had to step in first to limit the effects on the general public. With most other nations stepping in later.
It's also hitting the US quite hard and there are a number of factors.
The Russians and EU have also not helped matters, the EU are he'll bent on upsetting the Russians and are taking an age to get the nordstream 2 online. In retaliation the Russians have limited supply to the EU. Russia denies this obviously (but tell me when they've been upfront about something?)
It's as with everything else, it's all covid related somewhere, the price of fuel, price of kids toys at Xmas, price of turkeys, computers, cars, etc etc etc
The world was ****ed before covid, covid just made it even more so
Thank goodness Britain's Conservative Government decided the nation had no need of bulk gas storage.
anything to avoid public benefit.
"U.K.’s Lack of Gas Plan Leaves Country at Mercy of Global Market
- Kwarteng fails to address how U.K. will secure affordable fuel
- Britain has dearth of gas storage after closing its Rough site
21 September 2021, 13:59 BST
As U.K. Business Secretary Kwasi Kwarteng addressed parliament Monday on the energy crunch facing households, he left a key question unanswered: how will Britain secure enough gas this winter without paying the sky-high prices that have put multiple companies on the ropes?
At the crux of the problem is a lack of sites to stockpile the fuel, following the U.K.’s decision to close its biggest storage facility -- accounting for about 70% of capacity -- back in 2017. That’s left it reliant on the vagaries of the world market, competing with top buyer Asia for every molecule of liquefied natural gas offered for sale.
While the U.K.’s supply squeeze is particularly acute, Europe as a whole is suffering from insufficient inventories just weeks before the heating season starts. This predicament has been years in the making, with the region winding down its own gas output and boosting reliance on Russia and on intermittent wind and solar power. With those sources falling short this summer, and demand rising as economies emerge from the pandemic, prices have soared.
“We need storage; the U.K. gave up its storage and north Europe is only 70% full,” said Marco Alvera, chief executive officer of Italian energy infrastructure company Snam SpA. “If I were a policy maker, I would find every incentive to either force or incentivize or ask people to fill up existing storages.”
Centrica Plc, the U.K.’s biggest utility, announced the shutdown of its Rough storage facility off northeast England in 2017 after three decades of operation. That reduced Britain’s buffer against price moves and left it at the mercy of global markets.
“The government could have acted to keep it open, but did nothing,” said Ed Miliband, the opposition Labour Party’s business and energy secretary.
Kwarteng acknowledged that the lack of gas storage is “definitely an issue.” Still, he stressed there were no concerns about blackouts this winter and said the U.K. gas system is expected to function effectively, with 50% of supplies coming from domestic production and a further 30% from Norway.
The country has “more than sufficient capacity to meet demand,” he said. “We do not expect supply emergencies to occur this winter.”
So far, the market isn’t convinced. As Kwarteng finished his speech on Monday, U.K. gas prices closed up 16% at 189.65 pence a therm, the highest settlement on record. Futures have more than tripled this year, with summer prices in many cases trading near the same levels as winter. Rocketing wholesale costs have seen several small energy suppliers go out of business in recent weeks.
When Centrica closed Rough, no other storage facilities were built. With storage profits low for years amid an oversupply, companies had no incentive to get new projects off the ground.
“All governments rejected the chance to do something about this during the 2000s, early 2010s, when there were lots of storage projects that needed funding,” said Jonathan Stern, a distinguished research fellow at the Oxford Institute for Energy Studies. “They decided to ‘leave it to the market.’ Last year that was a great decision with huge supply, low demand and record-low prices; this year, not so good.”
Spot LNG
The U.K.’s insufficient storage means it’s fighting for LNG cargoes on the global market. And with countries from Japan to India panic-buying to secure supplies before the winter, very little is left for Britain. The U.K. also lacks the long-term LNG contracts that oblige sellers to deliver, leaving it reliant on the roughly 40% of supplies that trade freely on the spot market.
Rough’s shutdown has limited the U.K.’s ability to get its hands on LNG cargoes, according to Alex Froley, head of LNG at data provider ICIS. Britain received just three cargoes from July to September, while some 13 discharged at the Gate terminal in the Netherlands, he said.
“An important part of summer gas demand is for storage injections, so it may be easier to send cargoes direct to countries with major seasonal storage sites, such as the Netherlands and Germany, rather than to the U.K.,” he said.
And then there’s Brexit.
The U.K.’s departure from the European Union has stoked concerns over winter supplies, since countries across the region can sometimes stop exporting gas and electricity if there are risks of blackouts. The fear is that nations in the 27-member bloc will choose to cut off Britain first.
“We effectively have no gas storage, which makes us vulnerable and we just left the EU,” said Niall Trimble, managing director of consultants Energy Contract Co. “This is one of the side-effects of Brexit: we’ve become more vulnerable on energy security.”
https://www.bloomberg.com/news/arti...plan-leaves-country-at-mercy-of-global-market
If Poland needs to import gas from Germany then the conclusion is that Russia is no longer supplying enough gas to Poland.
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J
John.
No one has mentioned this but if there is a 6 day war in Ukraine, daily gas prices will rocket. However, once the Russians have taken more of Ukraine they will want to sweeten the west/etc. Gas prices will then drop IMO. Hopefully, the west and the Russians see sense and talk it out quickly to save inncoent lives but sadly politics is a dirty, nasty, deadly game.
D
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the buildings are there the work force is there……just needs someone with deep pockets to get the ball rolling
Aye, but they cost too much to run, not to mention the rising energy costs and unfortunately, we seem to be a nation of tight wads
That’s 40 years of neo liberal politics for you.
We need to look to Germany to see how we could rebuild manufacturing.
in Germany: Half of all youngsters in upper secondary school are in vocational training, and half of these are in apprenticeships
Apprentices aged 15 to 16 spend more time in the workplace receiving on-the-job training than they do in school, and after three to four years are almost guaranteed a full-time job.
In Germany, there is less stigma attached to vocational training and technical colleges than in many countries
We used to have great city and guilds courses now replaced by cr@p NVQs
look at the shortage of tradesmen in the UK - young people want to go to university to be an accountant, a lawyer, an app designer…,they don’t want to be a heating engineer.
Why don't we look to Korea or Japan instead?
Do you know anything about training and industrial output, or are you just quoting Germany "because of Brexit?
Should we have looked to Germany for the vaccine roll out? Or for defending Ukraine? Or helping other EU finances?
Our second 2 year fixed term with OVO finished just before things started to rise. We had been paying £100 a month for gas and electric for the last 4 years. I think I topped it up by around £100 last year to keep it on track. The new 2 year fixed price works out at £127 per month. I checked it several times after the fix and it was £153 then £185 but I've just checked it again and they now want £222! We were just lucky that our fix ended when it did.
The cost of energy has absolutely nothing to do with Brexit, energy costs have gone up throughout the Europe. My gas is costing almost 5x what it cost me last year, my electric 2.5x as much.
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You brexiteers are really getting desperate now, no matter what happens you will never blame brexit
Ah well, let the EU enjoy lower prices.
We voted to leave, let us face the consequences. I'm a gas man, I can comfortably afford the price rises but sadly many millions are going to be hit hard. I suppose many of them were brexiteers so let them reap what they sow.
I beg to differ. On Planet Notch, every.single.thing is related to Brexit. If you do find something that is not Brexit related, then its related the Boris Johnson instead. The man is obsessed.
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