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The supply of natural gas into the Channel Islands is not at risk yet, according to the Island’s Energy Group, despite Russia threatening to shut off supply to Europe.
Russia’s Deputy Prime Minister, Alexander Novak, said yesterday the country would have every right to impose an embargo on gas pumping through the Nord Stream 1 gas pipeline.
It was in response to a proposal floated by the United States of banning Russian oil sales.
Pictured: Guernsey Gas and Jersey Gas are both run by parent company, IEG.
Russia’s invasion of Ukraine continues to impact global communities and the threat of cut gas supplies would be devastating for reliant countries such as Germany. The Nord Stream is a system of offshore pipelines that supply natural gas to several European countries.
Despite this, IEG said gas in the Channel Islands is sourced from Europe.
“We are of course watching the alarming situation in Ukraine unfold, but can assure our customers that it currently does not affect gas supply in the Channel Islands,” said IEG.
“The product we use to produce our mains gas is Liquified Petroleum Gas (LPG) which is sourced from Europe, not Russia. The gas produced by Russia is natural gas, which we do not use in Jersey or Guernsey.”
Pictured: If Germany loses its gas supplies it could revert back to coal reserves.
While natural gas supply should remain unaffected, LPG prices could take a hit.
“LPG prices however remain volatile and we continue to manage this in order to protect the consumer from further price increases,” said IEG.
“Should the situation continue then we will need to consider the longer term impact on our business and whether these charges will need to be passed on.”
Even if the supply of natural gas remains unaffected, the price of gas could rise further as demand would increase in Europe without the Nordstream 1.
IEG should be reviewing its prices soon: as it already raised the price of gas 16.9% in Guernsey and 17.2% in Jersey during mid-October last year. This was due to a combination of issues culminating in IEG losing 70% of its profits in just eight weeks.
Average gas price rise of £10-15 per month
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