UK prices are quoted in therms, us prices are quoted in MMBTU. 1 MMBTU = 10 therms.
1 MMBTU is trading for approx $2.5, 1 UK therm is trading at 143p (circa $1.70), what is driving this nearly 7x difference between UK and US prices?
In: 5
It’s easy to transport oil, so the world prices are in lockstep
Transport natural gas requires either a pipeline or LNG tankers and liquefaction infrastructure which is much much more expensive.
So natural gas prices are local/regional.
The US is a net exporter of natural gas.
Europe /UK is importer so the prices reflects what’s needed for some of the import contracts now that cheap Russian gas is off the table
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