Qatar switched off its gas.
Europe noticed immediately.
Qatar supplies about a fifth of the world's liquefied natural gas. When Iranian drone attacks disrupted Gulf shipping in late February, Qatar halted operations. European gas prices doubled in days.
🛢️ How does Qatar affect a UK gas bill?
The UK imports a lot of its gas as gas shipped in by tanker.
Qatar is one of the biggest liquefied gas exporters in the world. When its production stops, the global price of liquefied gas goes up.
Higher global prices feed through to UK energy prices on the open market within days, not months.
🌍 Why is the UK so exposed?
Unlike continental Europe, the UK cannot import gas through gas pipelines from Russia or North Africa as a backstop.
We rely heavily on imported liquid gas from ships and North Sea production. Both are limited and price-sensitive.
This is one reason why demand flexibility. using less when prices spike. is worth real money.