RUSSIA is one of the world’s largest producers of oil, and concerns are building over how the Ukraine crisis will impact distribution and price of supplies.
Eastern European companies currently provide about 35 per cent of the gas across the continent, but how could the UK be affected?
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Does the UK get gas from Russia?
The UK’s reliance of Russian gas is far less significant to their European neighbours, sourcing an estimated three per cent.
Most of this gas comes in the form of liquid natural gas rather than being imported via pipelines.
Gas is supplied by the state-controlled Gazprom who have been one of the continent’s main suppliers for decades.
In 2020, 167.7 billion cubic metres of natural gas in Europe was imported from Russia.
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How much gas does the UK get?
The UK receives roughly half of its gas from domestic suppliers on the North Sea.
Another a third of gas is sourced directly from Norway.
The government previously said that the “UK has one of the most reliable energy systems in the world, thanks to our diverse mix of nuclear, natural gas and renewable technologies.”
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What other European countries get gas from Russia?
Of the 167.7 billion cubic metres of natural gas Europe imported in 2020 from Russia, Germany bought the most – 56.3 billion cubic metres.
They were closely followed by Italy, with 19.7 billion, and the Netherlands, with 11.2 billion cubic metres.
Elsewhere, countries including Czech Republic, Latvia, North Macedonia and Bosnia and Herzegovina relied on Russia for all their gas supplies in 2020.
Will energy prices go up due to Russia’s invasion of Ukraine?
Russia invading Ukraine will cause gas prices to spike due to its control over supply.
It comes as the West ponder whether to sanction Russia’s energy sector, as they themselves decide whether to restrict the flow of natural gas to Europe, with key pipelines passing through Ukraine.
Germany have already announced it would halt the approval of the controversial Nord Stream 2 service that connects the Russian coast near St Petersburg to Lubmin in Germany.
Their decision was criticised by Moscow who warned that Europe will be paying more for gas “very soon”.
In the UK, The Sun reported that costs were already on the rise in the wake of the invasion as wholesale gas prices increased by more than 85 per cent in just days.
Wholesale gas prices need to be high for a sustained period of time before it will have any impact on the price customers pay.
The energy price cap is due to rise by £693 a year in April from £1,277 to £1,971 before being reviewed again in October.
But if wholesale prices continue to spike then bills could go up again before then, piling more pressure on household budgets.
Following the invasion on Thursday, February 24, 2022:
- Oil prices surged to over $100 a barrel
- Wholesale gas prices increased 34%
- UK’s stock market closed down 3.88%
