Huge Hub Explosion Sparks Surge In UK NatGas Prices

It has been a tough week already for those that heat their homes in Britain (and those that trade Natural Gas). Following extreme weather warnings and the forties pipeline crack shutdown, an explosion at one of the Europe’s biggest gas hubs further tightened supplies sending gas futures prices up by the most in 8 years.

As Bloomberg reports, gas futures rose the most in more than eight years in Britain, which already is struggling to absorb the impact of a crack that shut down a North Sea pipeline network. After snow fell for two days in London, cooler-than-normal temperatures spread from the Alps to Scandinavia, raising demand for heating fuels.

An explosion at around 9am at Austria’s main gas pipeline hub, left one person dead and 18 injured, according to police.

The facility about 50 kilometers (31 miles) northeast of Vienna transports the equivalent of a 10th of Europe’s gas demand.

Fire engines, ambulances and a rescue helicopter have reportedly been deployed to the area, and all work has been halted at the site.

"Eighteen people are injured and one is dead," police chief Markus Haindl said, as quoted by Sputnik.

 

 

He added that "technical problems" caused the explosion, and that there was "no indication of terrorism."

Several media outlets previously put the number of people injured at around 60.

”It is the worst possible time for a big gas hub to burn, since capacity is needed ahead of the winter and it changes the expectations of how much gas there will be available,” said Arne Bergvik, the chief analyst at Swedish utility Jamtkraft AB.

 

“If weather turns colder and capacity is unavailable, it will absolutely drive up power prices.”

Britain felt the threat most acutely, since it lacks the gas storage sites and web of interconnections that link markets across continental Europe. As Bloomberg concludes, U.K. is more vulnerable than normal this winter because Centrica Plc is closing the nation’s biggest storage site after more than 30 years. The Rough facility was able to meet as much as 10 percent of peak winter demand but that is now much reduced as it pumps out its last remaining fuel.

It takes about two weeks to bring LNG from Qatar, the U.K.’s biggest supplier of the super-chilled fuel. Only one tanker, the Bu Samra, is confirmed as arriving in the U.K. this month. The first tanker from Russia’s Arctic plant Yamal LNG may also head to Britain and would arrive in about five days, according to shipping website sea-distances.

“Gas demand is at above average levels because of the cold snap,” he said by email, estimating the shortfall of supply from the Forties outage at about 10 percent of average winter demand. “If outages persist, prices will remain high for some time.”

Comments

Number 9 Tue, 12/12/2017 - 10:39 Permalink

that logging truck load of firewood in the yard smells like security...dude was beating on the door wanting to buy some..wtf..traded fiat for a tangible. sure as fvk not trading back..

NumNutt Number 9 Tue, 12/12/2017 - 11:04 Permalink

I have opted to cover all my bases, wood furnace to heat house (supplied with wood cut and split from my own property, not bought), 1,000 gallon propane tank for hot water (on demand) and cooking stove, and a whole house generator (propane) so i can watch TV. I figure I could live in relative comfort for about 1.5 months in the dead of winter if the shit the fan and power was to go completely out.  Just have to worry about the zombies....

In reply to by Number 9

rejected NoDebt Tue, 12/12/2017 - 10:53 Permalink

As can be seen by a previous reply,,, these people will say anything, do anything, think anything, to keep the MMGW BS narrative going. Notice they don't mention the addition of carbon from the 'wildfires' in Cali due to not doing controlled burning of the underbrush.... Morons will believe Anything these enlightened days. 

In reply to by NoDebt

NoDebt Tue, 12/12/2017 - 10:41 Permalink

"U.K. is more vulnerable than normal this winter because Centrica Plc is closing the nation’s biggest storage site after more than 30 years."No, surely you are confusing this with California.  

Spaced Out Shropshire Lad Tue, 12/12/2017 - 14:45 Permalink

"public utilities"....Huh?If they are in private ownership they are private mate, not public.And what makes you think government ownership of utilities would be better? You obviously didn't live through the Labour government-controlled 1970's, with the nationalised utilities bringing us daily power-cuts, rubbish piled up 30ft-high in city streets all over the country, etc, etc. It was a fucking disaster!Read a bit of history lad.

In reply to by Shropshire Lad

Son of Captain Nemo silverer Tue, 12/12/2017 - 11:05 Permalink

And less then 24 hours after Yarmulke'd "goy" President turned it "LOOSE" by making Jerusalem the Capital of IsraHell

What a coincidence?!!!

It's almost as good as an attack on the most powerful (past tense) military power in the World staging an attack during exercises catching them completely "off guard" of course... Or an intact and fully legible passport by the "terrorist in charge" showing up on a pile of disintegrated steel leaving behind the most important clue to the crime!

In reply to by silverer

Vageling Juggernaut x2 Tue, 12/12/2017 - 11:04 Permalink

Infrastructure? Are you just that clueless or do you think just because US infrastructure sucks (neglected is a more accurate term) it's the same everywhere else? And yes. I rather see money on infrastructure than wasted on a buncha worthless sand fleas demanding we feed them and provide luxury they never knew which has 0,0 ROI! Costs alot, but you get nothing.

In reply to by Juggernaut x2

NoWayJose Tue, 12/12/2017 - 10:46 Permalink

Goldman's goons have been busy...

You can bet they are long energy right now. If fundamentals are bad - just send the goons out to have some 'fun' with pipelines, refineries and hubs, and stirring up striking workers!

Vageling rejected Tue, 12/12/2017 - 11:35 Permalink

Market forces they said! Although I was in my late teens when they tried to sell this crap, I knew they were full of shit and a corp takeover. I payed attention in skool. Well, not so much to retarded teachers but the material was interesting (Int. Bus.Mgmt). Pfff... Anyone with a brain saw this coming. Socialize loses, privatize profit. The watchdogs? Still busy chewing on their bribes. New blood is regulated away. Free markets... LMAO! That's not what I learned in skool! Then again I was not popular. Yeah with gurls. The James Dean figure. But teachers hated my critical questions. Because I exposed them for what they were. Parrots. I'm just as shocked as you. Not, that is.Sending zombies out with some 1,2,3 step protocols never ends well. It easily can be some muppet ran out of playbook material. Or lack of maintenance. Who knows. I've done operational mgmt. Too much paper shit too little know how. Somebody missed something! Weather my ass. Different bright minds who had that in mind when designing it. Yes, errors happen. Preventing is never 100%, reducing risks.

In reply to by rejected

just the tip Tue, 12/12/2017 - 11:32 Permalink

has the evidence of chemical weapons been discovered?  has ivanka been crying in the oval office?  how many syrian passports have been accounted for?  when or will the US retaliate?launch codes for 60 cruise misslles to be released in 3......2.......

Kagemusho Tue, 12/12/2017 - 12:08 Permalink

Happens while parts of Europe are neck deep or higher in snow. My, isn't that just so convenient?And it's a harbinger of things to come: ADAPT 2030 https://www.youtube.com/user/MyanmarLivingIn the 1970's, the CIA commissioned the RAND Corporation to make some studies on what would happen with the onset of another ice age. The reports were declassified and comprise a book titled "THE WEATHER CONSPIRACY". It predicted lots of bad shit, like harvests failing and mass immigration from marginally inhabitable areas to warmer climes, with warfare resulting. It was pooh-poohed by the global warming intelligentsia of the day as they do today. But the Sun is entering a period of reduced output called a 'solar minimum', and when that happens things get a lot colder. As it's been getting every winter since 2010. Crops are being lost, and immigrants are on the move. War is breaking out all over the place, blamed on geopolitics but also by lack of food in areas like North Africa, which is partially why Europe is being over-run with locust-like immigrants. Recall the 'Arab Spring' was started by food riots.Worsening winters. Mass migrations of culturally hostile people into more temperate areas rich in food. Fragile, easily threatened infrastructure based on petrochemical sources. All the kind of stuff predicted in that book over 40 years ago. You can bet some governments are paying attention...digging huge underground bases with their own energy and hydroponics systems while they bullshit the public about global warming.