UK Natural Gas Futures Surge to 3-Year High

UK natural gas futures surged 26% to above 143 pence per therm on Tuesday, the highest since January 2023, after Qatar halted LNG output at its Ras Laffan complex following an Iranian drone strike. The shutdown of a facility responsible for roughly one-fifth of global LNG supply sent shockwaves through energy markets and extended the previous session’s 45% rally. The UK is particularly exposed due to limited storage capacity and heavy reliance on imports, with domestic inventories below 30% at the end of February. Flows through the Strait of Hormuz had already slowed, raising concerns over broader Middle East disruptions. Although most Qatari LNG goes to Asia, any prolonged outage is likely to intensify global competition for cargoes and lift prices in Europe as it seeks to rebuild low inventories ahead of winter.

UK natural gas futures jumped more than 40% on Monday to 111 pence per therm, reaching their highest level since February 2025, after QatarEnergy suspended LNG production at the Ras Laffan and Mesaieed industrial cities. The shutdown followed reports from Qatar’s Defense Ministry that two Iranian drones struck energy facilities earlier in the day. The escalation came after the US carried out strikes on Iranian territory, prompting Tehran to retaliate with attacks on regional allies. Investors also monitored disruptions to traffic through the Strait of Hormuz, a vital corridor for global energy supplies. The strait handles roughly one-fifth of global LNG trade, including key exports from Qatar, which accounts for about 15% of Europe’s LNG imports. With domestic gas storage less than 30% full at the end of February, the UK market remains highly vulnerable to external supply shocks.

UK Gas increased to 112.41 GBp/thm, the highest since February 2025. Over the past 4 weeks, Natural Gas UK gained 41.18%, and in the last 12 months, it increased 4.81%.