UK gas prices for same-day delivery rose 50% to 115 pence/therm today due to a combination of outages and low levels of storage to prices not seen since 2006.
UK natural gas prices reach seven year high - FT.com
UK gas hits 108 pence/therm as North Sea outages cut supply - Natural Gas | Platts News Article & Story
The rise in natural gas prices, low carbon prices and capricious energy policymaking is making it very difficult to invest in new gas plants:
Statoil warns of political danger to gas - FT.com
Power companies won't invest in gas. New nuclear and coal plants can't get permitting. Public support for renewable subsidies is evaporating. All this points to a freeze in investment in EU power generation, so what does this mean for EU power prices 2015-2020?However, Rune Bjørnson, senior vice-president for natural gas at Statoil, told the Financial Times:
“Continued political uncertainty around gas demand in Europe will ultimately have an effect on the willingness of producers, including ourselves, to invest in new gas supplies.”
His comments highlight increasing energy industry concern about the lack of clarity in European policy. Gas is expected to be important in some European Union states’ emission-reduction strategies by replacing more polluting coal in power generation. But utility companies, which account for more than a third of EU gas demand, are refusing to invest in gas-fired plants until governments spell out policies for the sector.
Eon, Germany’s biggest utility by revenues, is considering mothballing gas-fired power stations, Centrica has said it will not build any gas plants in the UK for at least four years and GDF Suez has taken a writedown on the value of gas-fired power plants across northwest Europe.