UK to import record levels of liquified natural gas as Ukraine tensions mount

Tom Marzec-Manser, an analyst at the market intelligence group Icis, said the UK is on track to beat the previous monthly record for LNG imports – 2.1 million tonnes (mt) – by Wednesday, and could end up importing 2.5mt by the end of the month based on Icis LNG ship-tracking data. 

S&P Global Platts Analytics echoed the forecast of a record, saying that nine shipments are expected before the end of the month.

Mr Marzec-Manser said 1.4mt of the UK’s imports this month have come from the US. That is well ahead of the previous monthly record of 800,000 tonnes of LNG coming to the UK from the US, in December 2020.

Those supplies have helped to soften gas prices which have been high for months owing to a global shortage as the world came out of lockdown.

Russia denies any manipulation, stressing it has met all contractual obligations. Last year it sent 29 shipments of LNG to the UK, up from 22 in 2020. 

Wholesale gas prices in Britain climbed 17pc on Monday as tensions over Ukraine grew.   

Christopher Ward, senior energy broker at Britannia Global Markets, said: “With tensions on Ukraine’s border with Russia continuing to ratchet up, both in terms of military presence and rhetoric, energy supply uncertainty in the UK and Europe does not look like easing soon. 

“The combination of US sanctions, coupled with Russia’s seeming willingness to use gas flows into Europe as a bargaining tool, could continue to drive energy markets higher.”

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