LNG Supply and UK Gas Prices Commercial Energy Procurement

LNG Flows: The Market’s Pressure Valve?

A detailed look at how global LNG supply, international competition, and overseas demand impact UK wholesale gas prices and commercial energy costs

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

ENERGY CONSULTANCY OF THE YEAR 2025

LNG Flows: The Market’s Pressure Valve? Supply/demand characteristics

Much of Europe now depends on LNG imports, with cargoes predominantly from the U.S. and Qatar, as well as other countries. Given that the UK gets a significant share of its gas from global suppliers, what happens in Asia or the Middle East can influence UK prices. If Asia bids aggressively for cargoes, it becomes more expensive for Europe (and the UK) to secure supply. When there’s plenty of LNG available, prices tend to settle.
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LNG supplies became of greater importance following the Russian invasion of Ukraine and Europe’s move away from Russian energy reliance. We need to continuously monitor cargoes heading to Northwest Europe, Asian demand signals and of course, ongoing geopolitical issues.

How Can Advantage Help?

Our sustainability department continue offer an ever-increasing range of products and technology aimed at reducing energy consumption and associated costs as well as driving down carbon emissions. We will, of course, continue to keep you updated on these initiatives, but please do reach out to your designated point of contact should you wish to explore your options in this regard.

In terms of procurement, we will of course continue to monitor markets with a view to helping customers navigate the unprecedented circumstances and ascertain when constitutes the best time to seek a contract extension.

Our popular flexible procurement options continue to be an option for an increasing number of clients on either a standalone basis or as part of a grouped basket. This often facilitates access to day/month ahead trading markets, which have proved to be particularly beneficial to many clients over the winter period.