UK Gas Prices Down 37% in April

Gas prices at the UK's National Balancing Point (NBP) hub in April 2016 fell 37% from the same month of the previous year, according to data from system operator National Grid.

Commodities prices have crashed generally, including oil, and Europe is now facing a price war between US LNG versus Russian and Norwegian pipeline gas.

The system average price for April 2016 recorded by operator National Grid was 29.49 pence/therm ($4.22/mn Btu), falling by 37% from 46.86 p/th the previous April.

The system average price is a reference price for daily gas used in industry settlement procedures.

There was very little change from month to month. April 2016's gas price was up just 1% from the 29.28 p/th average price recorded for March 2016.

UK national transmission system gas demand averaged 255mn m³/day in April 2016. This was up 23% from the 207mn m³/day recorded for the same month the year before, with lower gas prices boosting gas-fired power generation. It was lower on the month, dropping back 10% from the 284mn m³/day seen in March 2016.

Alex Froley