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Irish insulated from gas supply crisis

Thursday, March 21 17:40:48

While Irish gas supplies are running low thanks to the current extended Winter, hedging means that Irish domestic customers are protected from short term wholesale price fluctuations, according to Bord Gais Energy today.

In addition, Irish buyers of prompt UK gas have benefited and been cushioned somewhat from a weakening sterling versus the euro, according to John Heffernan, spokesperson for the Bord Gais Energy Index.

"Since the start of the year, the pound has lost nearly 5pc of its value versus the euro," he added.

Ireland gets nearly 90pc of its gas from the UK but Britain is grappling with a potential gas supply crisis as a late blast of winter depletes stored reserves, coal power plants close and pending maintenance in Norway threatens to further squeeze supply.

Britain risks running out of stored gas by April 8 based on the fall in its reserves seen since the cold hit at the beginning of March, Reuters calculations show.

Gas storage sites have been depleted by 90 percent, with the equivalent of less than two days' consumption remaining, data from Gas Infrastructure Europe shows.

If the cold persists, as is forecast, the UK may need to cut gas supplies to some big industrial customers, as it did in 2010 at a time of severe gas shortages.

The Department of Energy and Climate Change (DECC) said it was monitoring the situation closely.