Cost of living crisis: Why 50 huge gas tankers off Europe may not slash energy costs

By Philip Bradfield
Published 25th Oct 2022, 18:11 BST
Updated 25th Oct 2022, 18:18 BST
Despite some 50 huge tankers of gas waiting off Europe's coasts, consumers will not necessarily see any significant drop in prices.Despite some 50 huge tankers of gas waiting off Europe's coasts, consumers will not necessarily see any significant drop in prices.
Despite some 50 huge tankers of gas waiting off Europe's coasts, consumers will not necessarily see any significant drop in prices.
Despite over 50 major gas tankers waiting off the coasts of Europe with huge supplies, experts are not expecting any immediate drop in energy costs in Northern Ireland.

The I newspaper reported yesterday that the cost of living crisis could begin to loosen its grip on the nation within months if sky-high energy bills fall in line with declining wholesale gas prices in Europe.

It reported that unusually warm weather across Europe and improved supplies saw the price of natural gas for November fall below €100 per megawatt-hour (MWh) on Monday for the first time since June.

Hide Ad
Hide Ad

Over 50 tankers of liquefied natural gas (LNG) are in the vicinity of Europe however consumers are not immediately benefitting because there are so few plants that can transform it back to gas. Plus, the tanker owners could make dramatically more profits by waiting to deliver until December.

However Raymond Gormley, Head of Energy at the NI Consumer Council, does not see any major price changes on the horizon. “Short term wholesale natural gas prices have fallen slightly, due to a decrease in demand brought about by a mild winter so farm,” he said. “However, prices for the future delivery of wholesale natural gas remain high."

Most natural gas and electricity suppliers purchase the energy they supply in increments over a 12 – 18 month period prior to delivering it to homes, he added.

Ulster University economist Esmond Birnie said history shows that economies do adjust to higher energy prices through more efficient use of energy. However, while there has been some decline in world prices, he said, they are still higher than before the invasion of Ukraine.

Related topics:EuropeNorthern IrelandUkraine