UK gas prices surge over threat of strike at Australian LNG plant

Wholesale gas prices surged today as the risk of a strike at Australia’s North West Shelf LNG plant intensifies.

The strike has the potential to have a significant impact on the global supply of LNG especially with the colder autumn and winter months approaching.

Some experts are estimating that Australian LNG accounts for as much as 10% of the global supply so the impact will be significant as we will all have to find an alternative source.

Fortunately, with European LNG storage at above 90% capacity, the affect of the strike threat on prices will be limited at the moment but it won’t take long for pressure to ramp up if the threat of strike persists over the coming days.

With 35% of electricity still requiring gas as the primary source of generation in the UK this will not be just limited to gas prices going up. Electricity will be going up as well.

At the time of writing, we are this morning starting to see retail prices go up as a result.

This might be a short term blip but we would encourage anyone that is approaching the end of a fixed term contract or currently out of contract, to compare the market now.

Compare the market

It only takes a couple of minutes to see rates from leading gas and electricity suppliers.

It can done completely online. All you need is your business postcode to see the latest business electricity and business gas prices for your meter.

Track Wholesale Price Trend Updates

If you would prefer to defer your decision and want to get a better idea of what drives energy prices in the UK you can check the latest prices trends.

You can track the latest price trends by clicking here.