UK to import record levels of liquefied natural gas as tensions in Ukraine rise

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

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

Mr Marzec-Manser said 1.4million tonnes of UK imports this month came from the US. This is well ahead of the previous monthly record of 800,000 tonnes of LNG arriving in the UK from the US, in December 2020.

These supplies have helped ease gas prices which have been high for months due to a global shortage as the world emerged from lockdown.

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

Wholesale gas prices in Britain soared 17% on Monday as tensions over Ukraine grew.

Christopher Ward, Senior Energy Broker at Britannia Global Markets, said: “With tensions on the Ukraine-Russia border continuing to escalate, both in terms of military presence and rhetoric, the uncertainty of energy supply in the UK and Europe does not appear to be easing any time soon.

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

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