UK National Grid Issues Natural Gas Supply Alert - Guardian

[hatrack]

The National Grid, responsible for running Britain's gas and electricity pipes and wires, yesterday issued an unprecedented warning that the country was in danger of not having enough gas to meet demand. It issued its first-ever "gas balancing alert" to the market, telling traders that gas demand might have to be reduced, initially for businesses. The move sent wholesale prices spiralling up fourfold.

The British gas supply market has been caught out by unexpectedly cold weather and a technical problem: the country's only significant gas storage facility on the Rough offshore field in the North Sea is out of action due to a fire. Centrica, which operates Rough and runs the British Gas residential supply firm, said it could not be sure when it would get the emergency supply facility back into action.

Wholesale gas prices have risen to their highest level in four months, increasing the likelihood of further hikes in domestic gas bills which have already increased by a quarter in recent weeks. The gas crisis will restart the political debate in the European Union about the continental energy market. Despite a pending shortage of gas in Britain which could lead to some manufacturing companies having their supplies cut off, there has been little help from France, Germany or the Netherlands where supplies are still plentiful.

The price of wholesale gas in Britain hit 250p a therm yesterday, three times more than in the Netherlands. Despite this, London gas traders said they were struggling to source new supplies. The newly-enlarged Interconnector pipeline from continental Europes was running only half-full, they said. National Grid confirmed it had posted a gas balancing alert but insisted that this did not mean the country was about to run out of gas. "It is just a signal to the market that there is an increased possibility that there might need to be a reduction in gas demand," said a spokesman. He added that some large industrial users might have to forego supplies.

EDIT

http://business.guardian.co.uk/story/0,,1730310,00.html

[rfkrfk]

1. this is insane

natural gas can sometimes be a substitute for
motor gasoline. what do you think happens when gasoline tax
is four bucks a gallon, the effect ripples everywhere,
the working class is always the victim

[NNadir]

2. 52% of UK thermal electrical capacity is provided by natural gas.

Like many places on the planet, they thought gas was everything and built gas plants all over the place in the 80's and 90's.

Too bad.