UK: North Seas most important oil and gas pipeline had to be closed after cracks
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Double fuel disaster to add 3p to a litre of petrol: Cracks in major oil and gas pipeline and explosion at Austrian transfer station threaten supplies
North Sea’s most important oil and gas pipeline had to be closed after cracks
Price of a barrel of Brent crude rose to $65.56 (£49.23) not seen since 2015
It comes as Britain goes through a cold snap, pushing up demand for domestic heating
By Rachel Millard City Correspondent For The Daily Mail
Published: 20:25 EST, 12 December 2017 | Updated: 20:30 EST, 12 December 2017
Families face paying 3p extra for a litre of petrol by Christmas – on top of higher energy prices – after two catastrophic incidents threatened winter fuel supplies.
The North Sea’s most important oil and gas pipeline – carrying 40 per cent of mainland Britain’s crude oil from the North Sea – had to be shut down after cracks were found.
As a result, the price of a barrel of Brent crude rose to $65.56 (£49.23), a level not seen since the summer of 2015.
The North Sea¿s most important oil and gas pipeline ¿ carrying 40 per cent of mainland Britain¿s crude oil from the North Sea ¿ had to be shut down after cracks were found (stock image)
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The North Sea’s most important oil and gas pipeline – carrying 40 per cent of mainland Britain’s crude oil from the North Sea – had to be shut down after cracks were found (stock image)
Last night, the RAC warned the disruption could push the cost of petrol and diesel at the pumps up by 3p per litre.
Yesterday there was also an explosion at a major gas transfer station in Austria – the main point of entry for Russian gas into Europe. In the wake of the blast, UK gas prices hit their highest level for six years, threatening higher bills this winter.
The double blow comes as Britain goes through a cold snap, pushing up demand for domestic heating.
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Ineos, which operates the Forties pipeline in the North Sea, said it had been forced to shut the network for several weeks to repair a hairline fracture found during an inspection close to Aberdeen last week. Simon Williams, of the RAC, said: ‘This is very bad for motorists who are already having to endure the highest prices at the pumps for three years. This really isn’t what drivers need at Christmas when many are travelling longer distances to spend time with family and friends.’
The average price of unleaded is already 120.76p per litre, compared with 114.33p in July. Diesel sells for an average 123.21p a litre, up from 115.02p in July.
The predicted 3p rise would increase the cost of filling a 55-litre, family-sized car to £68.07 for petrol or £69.42 for diesel.
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Meanwhile, experts said the explosion in Austria would not immediately lead to higher gas bills, but could filter through to worse tariffs in the new year. Italy has declared a state of emergency due to concerns over the security of its supply as a result of the explosion at 9am yesterday, which killed one and injured 21.
It appeared to be caused by a technical fault and operator Gas Connect Austria could not say how long it would take to get it back online.
Mike Mahoney, of energy research firm Cornwall Insight, said: ‘This could put some of the suppliers under pressure. It can cost them a lot more to see their commitments through and if people are looking at tariff increases in the new year, this might feed into it.’ Analysts predicted the problems could lead to ongoing high wholesale prices.
Massimo Di-Odoardo, of Wood Mackenzie, said: ‘The European gas market seems to be going through a perfect storm.’
Why we're so vulnerable to energy shocks ....................
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