UK pays more than EU for gas as winter looms

finance
Created 11/5/2024
Updated 11/5/2024

The UK is paying significantly more for natural gas than Europe as winter approaches, with prices reaching the widest gap since late 2021. High transmission costs, low storage capacity, and global shortages of liquefied natural gas (LNG) force the UK to outbid EU markets for supplies. While Europe benefits from extensive pipelines and ample storage, the UK relies on imports for over 60% of its gas this winter. Traders warn that the UK’s steep costs to process LNG discourage suppliers, especially during colder weather when demand spikes. A harsh winter could worsen the situation, driving prices even higher to secure supplies.

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