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Gas prices instability set to grow, firm warns

By Margaret Canning

Published 04/07/2016

The Brexit vote will contribute to volatile gas prices in the months ahead, experts claim
The Brexit vote will contribute to volatile gas prices in the months ahead, experts claim

The Brexit vote will contribute to volatile gas prices in the months ahead after they fell by around a fifth on last year, a report has predicted.

Energy supplier Vayu said the 22% year-on-year slump in prices was down to low demand, as well as strong supply of liquefied natural gas and pipeline flows from the North Sea.

However, month-on-month, there was a significant increase of 11% to 34.26p per therm of gas during June.

Senior energy analyst Joanne Daly predicted further volatility because of unplanned North Sea outages, uncertainty following the vote to leave the EU and problems at the Rough storage facility off the cost of England, which will be out of commission until next month.

The decline in gas prices has also led to a fall in wholesale electricity prices of about 25% year-on-year.

Wind energy is expected to be strong in the near future, supplying more than 16% of total demand in the province in the first half of the year, and 21% of demand across the island of Ireland, Vayu said.

Belfast Telegraph

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