LONDON -(Dow Jones)- The U.K. has sufficient supplies of natural gas to meet demand for the coming winter months, partly as a result of increased liquefied natural gas imports, leading industry figures said Wednesday.
Speaking at U.K. regulator Ofgem's annual seminar on National Grid's Winter Outlook report here, EDF Energy head of market and analysis Cathy McClay described the U.K supply position as "comfortable."
"The supply overhang in the global LNG market will take time to clear due to a combination of the economic downturn and new liquefaction capacity," McClay said.
This year's report, published Oct. 1, shows U.K gas and electricity demand is expected to be lower than last winter as the recession continues to depress energy consumption.
A key driver for price direction will be the decoupling of oil and gas prices, said McClay. Prior to March 2009 coal, gas and oil prices were correlated relatively strongly, but gas and oil prices have since diverged sharply, partly due to a structural change in the gas market.
There has been significant expansion of LNG infrastructure in 2009 with three import facilities now in commercial operation. U.K. storage facilities have also filled in record time and currently stand at a record high of 4.4 billion cubic meters.
-By Angela Henshall, Dow Jones Newswires; +44 (0)20 7842 9285; angela.henshall@dowjones.com