Shale Gas Could Create a More Integrated Global Gas Market

Some shale gas extracted in the United Kingdom could probably be exported to Continental Europe, said former Energy Minister Chris Huhne on the BBC Radio 4 Today programme.

“It would certainly get used here”, said Huhne on Monday, adding that exportation is likely.

According to Huhne, the UK is linked in to world gas price much more than the Americans are, due to present state of the available infrastructures. 

Huhne said that UK gas prices could decrease, in the wake of import of fracking gas from the United States. 

“There are lots of proposals outstanding to the US government for approval for export terminals, and so far just four have been approved, and there are another 10 awaiting approval,” former Energy Minister said. 

“What we need is lots and lots of those approvals, because that will gradually equalise the gas price in the US with the rest of the world. At the moment, they are getting a tremendous competitive advantage from the low gas price”, said Huhne, referring to gas prices in the US, which are three times lower than UK wholesale gas prices.