"Oversupply of gas does not mean price cuts"


This article in the Torygraph pretty much sums up the fragility of the UK's gas supply situation...

In the case of LNG, "diversion clauses" in many of the contracts mean that ships can be shifted to more lucrative markets in the event of price spikes elsewhere in the world.

So all we need is another Hurricane Katrina in the US to see our own LNG cargoes diverted across the Atlantic to meet a sudden US shortfall, and we could find ourselves with another supply shortage, and another price spike.

It's not about security of supply for us, it's about secure profit margins for Exxon and co...