Business,Gas,Supply,amp,Storag DIY Business Gas - Supply & Storage


When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in


Today, more than half of gas used comes from imported sources. The National Grid estimates that by 2020 the UK will import around 70% of domestic and commercial gas.  The UK is actually still a relatively large producer of natural gas. After the Netherlands it is the second highest producer in the EU and is one of the top 20 producers globally. However, demand has increased greatly and overtaken available supply. Approximately 50% of a domestic gas andup to 80% of a business gas bill is made up of the wholesale cost. At times of peak demand the wholesale market price can increasedramatically. An example of this was seen recently where severeweather conditions across the continent caused a spike both in demandand prices. In the UK the price of gas for next day delivery reacheda peak of 75p per therm, which was the highest level for more thanthree years. In relative terms, prices for businessgas customers are actually among the lowest of the 27 countrieswithin the EU. Only five countries were lower for consumption ofless than 0.25 GWh/year – Bulgaria, Estonia, Finland, Lithuania andRomania. While for heavier gas consumers (5 GWh/year), the UK wasthe second cheapest country within the EU, with only Romania beingcheaper. One way for energy providers to protectagainst price fluctuations is to have gas storage facilities allowingthem to purchase gas on the wholesale market at quieter, cheaperperiods. The Rough gas field, 20 miles off the East Yorkshire coastacts as both a source of gas supply and a storage facility. Thesite, operated by Centrica, owner of British Gas, was originallydiscovered in the 1960s, and by the 1980s had been converted to allowstorage of gas. At times of peak demand approximately 10% of the UK’srequirement for domestic and business gas can come from the Roughfield. In addition to the Rough gas site, a Liquid Natural Gas (LNG)import facility was opened at the Isle of Grain in 2005 and two newLNG terminals at Milford Haven (Dragon and South Hook) begancommissioning gas in 2009. Storage facilities such as these areimportant because they allow for proactive management of demand. Thismay enable energy companies to offset demand spikes, resulting in apotential reduction in the price charged to domestic and business gascustomers. With the opening of new facilities, the UK’s ability tostore gas has improved. However, capability is still estimated atless than 5% of annual gas demand.

Business,Gas,Supply,amp,Storag

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