UK Gas Prices Drop Further

UK natural gas prices fell to around 140 pence per therm on Friday, extending Thursday’s decline amid signs of improving shipping conditions through the Strait of Hormuz despite regional tensions and steady LNG arrivals in Europe. Qatar sent its first LNG tanker through the waterway in more than three weeks, raising hopes that exports from one of the world’s largest LNG suppliers could gradually resume. Increased LNG arrivals into Northwest Europe and stable pipeline flows from Norway, also helped ease supply concerns. Despite the recent pullback, UK gas prices remain more than 34% higher in July, as renewed US-Iran hostilities disrupted Persian Gulf supplies while heatwaves boosted electricity demand, limiting Europe’s ability to replenish inventories ahead of winter. EU storage facilities are about 55% full, below the seasonal five-year average and behind the pace needed to comfortably meet pre-winter storage targets before the heating season begins in November.





