The price of natural gas in the UK has tumbled by as much as thirty percent after the closure of a pipeline carrying gas between Britain and mainland Europe prevented companies from exporting any excess supply.
Within day gas at the National Balancing Point fell by 4.20 pence to 10.80 pence, this is the biggest one day decline since March. The so-called interconnector to mainland Europe was closed today after it was found to be transporting liquid, said the company overseeing the pipeline.
The UK uses less gas in summer than other seasons because households need less energy for heating and companies use less electricity. Companies that drill gas in the UK use this time of year to shore up reserves and export excess supply to Europe.
“The interconnector going down would hit the spot price,” said Jeremy Elden, head of oil and gas research at Lehman Brothers “We're exporting gas at present and that will back it up into the UK"