Original title: European natural gas soars 250%, British suppliers face closure! The agency hinted that the nightmare is not over.
Natural gas prices in Europe have soared 250 per cent so far this year, with the UK particularly hard hit. The UK energy industry could face major changes as European countries grapple with an unprecedented crisis in the power sector, industry insiders have warned. Unfortunately, both the International Energy Agency and Goldman Sachs Group predict that natural gas prices will rise in the future.
European natural gas prices soar and British suppliers face bankruptcy crisis
Natural gas prices at the TTF centre in the Netherlands, the benchmark for European gas trading, rose to 73.150 euros per megawatt hour on Monday, hovering near last week's all-time high. Natural gas prices have risen by more than 250% since January.
Robert Buckley, head of relations and development at Cornwall Insight, said the crisis was caused by factors beyond the control of energy suppliers. These factors include fierce competition for natural gas transportation between Europe and Asia, some failures in US production facilities and the tightening of EU carbon market rules.
Bill Bullen, founder of Utilita Energy, the UK energy supplier, warned that the surge in wholesale natural gas prices would inevitably lead to more bankruptcies in the energy industry.
"at this rate, we will return to an oligopoly and the industry will go backwards," he said in an email on Monday. "
"this is a global problem and we are working closely with the government to manage the wide-ranging impact of rising global natural gas prices," a spokesman for Ofgem, the UK's gas and electricity market regulator, said in an emailed statement.
European governments are eager to take action to prevent the crisis from hitting consumers too much. The British government is considering providing relief loans to energy suppliers, according to local media reports. According to Peng, British Prime Minister Johnson tried to reassure the public that he described the energy pricing crisis as "temporary". There are limits on how much energy suppliers can charge consumers, and the government reviews the price ceiling every six months.
Kwasi Kwarteng, the UK business secretary, has held emergency meetings with a number of energy suppliers to discuss how to help them cope with record natural gas prices and ensure a stable supply of gas to the UK this winter.
Market analysis said that under the current circumstances, in the next 7 to 10 days, at least four suppliers in the UK are likely to withdraw from the market for financial reasons.
The cost of natural gas is "changing with each passing day", but the price is limited, making suppliers miserable.
Eurasia GroupEurasia Group) is a political risk consulting firm. In a note on Monday, it warned that soaring energy prices on the continent had had a geopolitical impact on the region. The Spanish government issued a decree this week to limit retail energy prices. Analysts at Eurasia Group speculate that the EU's credibility as a climate leader could be damaged if more EU member states emulate Spain and put cheap energy above a green transition.
"if there are other imitators of Madrid's actions this winter, then the EU's efforts to promote climate action at global talks in November may be affected," the Eurasian Group said in a report on Monday. "
Natural gas in Europe may rise in the future.
But Britain's nightmare is far from over, as many institutions predict that natural gas prices may continue to rise in the future.
Fatih Birol, executive director of the International Energy Agency, said in acceptance on Friday that European natural gas prices are likely to continue to rise in the coming weeks as the European heating season begins.
Birol also pointed to strong demand as a driver of higher natural gas prices, while supply from Russia fell and Russia failed to replenish Europe's natural gas stocks in time before the heating season.
Goldman Sachs Group also predicted in the latest research report that the tension between supply and demand of natural gas in Europe is expected to further intensify in the next few months, and the whole of Europe will face the risk of power outages.