business news

UK increases oil & gas supply to EU amidst Ukraine war, despite Brexit

Date: June 14, 2022 Meghna Singh Meghna Singh
UK increases oil & gas supply to EU amidst Ukraine war, despite Brexit 
The UK has reportedly ramped up the amount of natural gas it pumps to the EU in response to Russia's war in Ukraine, resulting in a record monthly boost in the exports of goods to the continent despite the onset of Brexit.



According to data from the Office for National Statistics, EU goods exports grew for the third month in a row to £16.4 billion ($19.9 billion) in April, the highest monthly figure in recent prices since records started in 1997.



The data reveals that the UK is working as a hub for LNG or liquified natural gas imports from around the world before pouring it down the pipelines to the continent, underlining the repercussions of the war in Ukraine as EU nations attempt to reduce their reliance on Russian energy supplies.



The country’s crude oil and gas exports increased by £500 million ($608 million) to the month, augmented by the elevated supply of gas and crude oil to Netherlands and Ireland, highlighting elevated demand in the region as it fills up its gas storage facilities ahead of the winter.



The increased value of fuel prices, instead of the number of other products, drove much of the growth in total goods exports. Exports of goods were at their highest level since December 2020, the last month before transition of Brexit ended.



Energy prices across the world have risen dramatically as a result of Vladimir Putin's invasion of Ukraine and growing concerns around supply security, fueling the highest rates of inflation in various nations, including the United Kingdom.



In response to the war, EU countries that rely heavily on Russia for energy have explored other suppliers while limiting imports.



Three of Europe's largest facilities for transitioning LNG back into gas are located in the United Kingdom; two at Milford Haven, Pembrokeshire, with one in the Isle of Grain, north Kent.



Imports from the United States and Qatar have increased dramatically, as western powers seek to minimize their dependence on Russian exports.



Despite having one of Europe's largest LNG terminal capacities, the UK has one of Europe's smaller storage facilities for building winter stocks.



Source credit: https://www.theguardian.com/business/2022/jun/13/uk-gas-oil-exports-eu-amid-russia-ukraine-brexit

About the author

View All Posts

Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.