Gas alert as demand and prices rise

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vtsnowedin
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Post by vtsnowedin »

johnhemming2 wrote:
vtsnowedin wrote:I expect anything you are importing from or through the EU will become less certain especially during times of shortage. That includes Natural gas from Russia and electricity from France. Even NG from the Norwegian section of the North sea might be held inside the remains of the EU and not sold to you at any price.
True, but the LNG doesn't come from there. Norwegian gas comes down a pipeline as does gas from somewhere else which comes across the channel (that might even be molecules that have visited Russia).
LNG to the UK comes mostly from Qatar with that amounting to roughly a quarter of all natural gas imports. I did not say LNG from Norway just NG.
The rest of the gas comes through pipelines compressed enough to move it through the pipelines but nowhere near the pressures needed to liquefy it.
But those pipelines have valves in them and when you leave the EU there will be nothing to stop the Norwegians from shutting off the valve serving the UK. And the same goes for the gas coming under the channel from the EU no matter what country was the source that pumped it into the EU pipeline system.
woodburner
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Post by woodburner »

The gas control people are commercial and just want paying for what they deliver. As long as that happens this project fear stuff is so much hot air.
To become an extremist, hang around with people you agree with. Cass Sunstein
vtsnowedin
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Post by vtsnowedin »

woodburner wrote:The gas control people are commercial and just want paying for what they deliver. As long as that happens this project fear stuff is so much hot air.
There is governmental regulation and taxation on top of commercial operations. To think that the rules ,prices and supply can't change for the worse is foolish.
Pepperman
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Post by Pepperman »

I'm pretty sure not a single molecule of CH4 comes to the UK from Russia. That's not to say we wouldn't be vulnerable to a restriction in supply from there but that's purely because the supply of gas to the EU as a whole would reduce.
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clv101
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Post by clv101 »

Pepperman wrote:I'm pretty sure not a single molecule of CH4 comes to the UK from Russia. That's not to say we wouldn't be vulnerable to a restriction in supply from there but that's purely because the supply of gas to the EU as a whole would reduce.
It doesn't matter where the molecules come form. If something happened to stop Russian gas entering the European market, you can be sure the UK would have a harder time securing gas.
vtsnowedin
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Post by vtsnowedin »

Pepperman wrote:I'm pretty sure not a single molecule of CH4 comes to the UK from Russia. That's not to say we wouldn't be vulnerable to a restriction in supply from there but that's purely because the supply of gas to the EU as a whole would reduce.
Perhaps but considering the percentage of gas in the EU pipe system that comes from Russia you shouldn't bet the rent on that.
There are a couple of things to consider. How much storage and LNG off loading capacity would it take to avert harmful shortages if both Norwegian and other European gas lines to the UK were shut down mid winter?
And secondly are plans to transfer from coal to LNG from the USA and Canada realistic with the drill count in North America where it is and prices where they are?
Pepperman
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Post by Pepperman »

clv101 wrote:It doesn't matter where the molecules come form. If something happened to stop Russian gas entering the European market, you can be sure the UK would have a harder time securing gas.
Oh for sure it affects the supply for the continent but it's a common misconception that we import from Russia when it all comes from around the north sea or via LNG tanker.
johnhemming2
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Post by johnhemming2 »

I think there are two pipes that start in Norwegian waters. However, the interconnector was originally built to export gas and is used to import gas.

http://www.interconnector.com/

Obviously pepperman is right in that any constraint from Putin would impact the interconnector. However, although I have not checked recently I would think there would be some connectivity to Russia even if the flow would be really really small.
vtsnowedin
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Post by vtsnowedin »

It is hard to pin down but I did find that Germany buys 40 billion cubic feet of Russian gas each year so there is quite a flow from east to west. To increase UK options perhaps a joint venture with Gazprom might be entered where a LNG facility was built at some port near the Yamal gas fields in NW Siberia. 70N-70 E if your looking at a map. If the deal was written in units of gas say 50 percent of production goes to the builders and maintainers of the port facilities and compressor plant then changes in values in Rubles or pounds would not matter. You would have ice issues in winter but with the large nuclear ice breakers the Russians are building the shipping season could be long enough to fill up the UK storage each fall.
Pepperman
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Post by Pepperman »

DUKES has gas flows between countries in Map 4.1 here:

https://www.gov.uk/government/uploads/s ... pter_4.pdf
vtsnowedin
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Post by vtsnowedin »

Pepperman wrote:DUKES has gas flows between countries in Map 4.1 here:

https://www.gov.uk/government/uploads/s ... pter_4.pdf
I had seen that report reading up on this issue. The line from Russia to Germany says 23.5 I've read elsewhere it is now 40 but that might be different years data. Anyway Germany trades back and forth with both the Netherlands and Belgium which both trade back and forth with the UK so it is certainly conceivable that some gas coming into the UK came out of a well in Russia. Not likely mind you or an every day event but possible and most likely during the low demand summer storage season.
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adam2
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Post by adam2 »

clv101 wrote:This could be problematic come the winter...

Shutdown at UK's largest gas facility
http://www.bbc.co.uk/news/business-36604520
Wholesale gas prices have been volatile following news that the UK's largest gas storage facility is being shut down for 42 days.
Gas prices for the coming winter surged more than 8% on Wednesday after Centrica Storage said its Rough facility would close until 3 August.
The plant accounts for 72% of the country's gas storage capacity, but has been affected by safety issues.

Does anyone know what the present gas storage capacity is ? and to what extent it is filled ?
The data on the national grid "prevailing view" site has not been updated lately.
"Installers and owners of emergency diesels must assume that they will have to run for a week or more"
johnhemming2
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Post by johnhemming2 »

adam2 wrote:Does anyone know what the present gas storage capacity is ? and to what extent it is filled ?
The data on the national grid "prevailing view" site has not been updated lately.
Remember the LNG which acts as storage (Short term storage is LNG as well).
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clv101
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Post by clv101 »

clv101 wrote:This could be problematic come the winter...

Shutdown at UK's largest gas facility
http://www.bbc.co.uk/news/business-36604520
Wholesale gas prices have been volatile following news that the UK's largest gas storage facility is being shut down for 42 days.
Gas prices for the coming winter surged more than 8% on Wednesday after Centrica Storage said its Rough facility would close until 3 August.
The plant accounts for 72% of the country's gas storage capacity, but has been affected by safety issues.
A few weeks on:
Major gas store shutdown prolonged
http://www.bbc.co.uk/news/business-36811029
Wholesale gas prices have jumped after British Gas owner Centrica said it had been forced to shut a major storage facility for the winter.
The Rough facility accounts for about 70% of all UK gas storage.
woodburner
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Post by woodburner »

That's going to be fun for electricity generation then. :shock:
To become an extremist, hang around with people you agree with. Cass Sunstein
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