Gas prices forecast in the UK 2020-2027

The price of gas in the United Kingdom is forecast to amount to 2.8 British pounds pence per therm in 2022/23, a large increase when compared with 2020/21. While prices are expected to remain high in 2023/24, it is anticipated they will fall to lower levels by 2024/25. Combined household expenditure on energy derived from gas reached 13.83 billion British pounds in 2019. Spending had seen only slight fluctuations since 2010, with the most prominent being a jump to 17.1 billion British pounds in 2013. That year corresponds with supply problems from a Norwegian plant – the UK’s lead exporter – and below-average winter temperatures across the country.

Indigenous production set to decline

The fall in natural gas prices is accompanied by declining production levels. With onshore shale gas extraction suspended as of November 2019 and many offshore oil and gas fields depleted, the country is set to become more reliant on energy imports.

Gas prices worldwide

Natural gas prices in Europe tend to be higher compared to those in the U.S. as the latter is a major shale gas producer. In 2030, prices in Europe were forecast to climb to 7 nominal U.S. dollars per million British thermal units, three U.S. dollars more than prices in the North American country.