WIREDGOV

You may have seen recent reports in the news regarding gas shortages. YPO is here to support you, and we have provided some background information to help explain the situation. 

In early March, energy markets reached their highest prices in over a year due to rising conflict in and around Iran. Qatar Energy, the world’s largest producer of liquefied natural gas (LNG), temporarily paused production following an Iranian drone strike, which has increased concerns about global gas supply. With reports suggesting the conflict may continue for several more weeks, prices have risen further. 

Gas storage levels in Europe are also lower than usual for this time of year after a colder winter. This could lead to more competition from Asian countries as they begin to rebuild their supplies ahead of summer.

Key market drivers: 

• European storage: Lower than normal for the season, with added pressure from ongoing geopolitical tensions. 
• Norwegian supply: Gas flows have remained stable. 
• Geopolitics: The conflict in Iran is currently the biggest factor affecting Liquefied Natural Gas (LNG) production and transport. 
• Weather: Early March forecasts point to slightly warmer conditions, while April temperatures may fall below seasonal averages. 

YPO trading: 

YPO gas and electricity customers are in a good position, the YPO baskets are currently purchased out past 2026 , meaning that the longer-term hedging strategy is working and we are able to minimise the impact of the current energy shocks by purchasing over a longer period.  

Our energy team are on hand to talk you through how YPO can support your organisation and what the next couple of years could look like for your budgets. 

Jack.Fairchild@ypo.co.uk and Steven.Warren@ypo.co.uk.