Natural gas production plays a significant role in the UK energy landscape as a primary source of heating and electricity generation. It accounted for a record high of around 43% of the country’s electricity generation in 2020 and is also widely used for heating in homes and businesses. The UK has a significant amount of natural gas reserves and infrastructure in place to extract, transport, and distribute the gas, making it an important part of the country’s energy mix.

As expectations for warmer weather throughout much of the UK and Europe reduced heating demand, UK natural gas futures were trading around the 150 pence per therm level, near to levels not seen since June 2022 and down over 80% from their March peak of 800 pence. Furthermore, during the previous few months, strong LNG imports and healthy gas inventories have dramatically reduced natural gas prices. The exact amount of natural gas consumed in the UK in 2021 is not publicly available as of my training data cut off in 2021. However, you can find this information from reliable energy sources and agencies.

As part of a coordinated effort to lower costs and diminish Russia’s impact on the western energy supply, the US in particular has agreed to expand natural gas shipments to the UK. After a roughly 50% decline in December, the UK benchmark is down more than 20% in January, putting it on track for a second consecutive monthly loss.

Natural gas forecast 2023: a short-term energy outlook

By the conclusion of this quarter, The Energy Information Administration (EIA) has not released its natural gas predictions for 2023 experts and Trading Economics’ global macro models anticipate that UK Natural Gas will trade at 164.05 GBp/Thm. Looking ahead, we predict it will trade at 247.68 in a year; this is a national benchmark price is UK Natural Gas Futures.