How much does the use of LNG cost the UK?
not that it matters in a government enforced monopoly - except in increasing household bills.
Earlier I cross posted an article from Eige Values which highlighted the blatant lies told by the high priests of the UK’s energy priests:
AR7a Results Expose Government Lies - by David Turver
Th issue of using US LNG imports as the basis for setting the price of electricity to UK households bears closer scrutiny.
Let’s start with the available reserves in the North Sea (using Brave AI unless otherwise stated).
“North Sea gas reserves in the UK are currently estimated at 2.9 billion barrels of oil equivalent (boe) in proven and probable reserves as of the end of 2024, according to the latest Reserves and Resources Report by the North Sea Transition Authority (NSTA). “
“In 2019, the UK’s total primary energy consumption was 141,951 ktoe (1651 TWh), predominantly from fossil fuels: petroleum products (44%) and natural gas (31%).
To put that in more recognisable terms.
In 2019, the United Kingdom’s total energy consumption was 142.0 million tonnes of oil equivalent (Mtoe), which is equivalent to approximately 9.2 billion barrels of oil equivalent (bboe). “
So apparently, the UK only has around three years of Norh Sea il and gas reserves left based on 2019 consumption levels! .
If you believe that I have a few trees you can hug together with a white cloak and a pointy hat with a large’ D’ on it!
The Green anti-fossil fuel lobby has been busy re-writing he UK’s shale gas potential.
“The UK’s potential for recoverable shale gas is significantly lower than earlier estimates suggested. Initial 2013 assessments by the British Geological Survey (BGS) estimated 822 to 2,281 trillion cubic feet (Tcf) of gas-in-place in the Bowland Shale, with a central figure of 1,329 Tcf—enough to supply the UK for up to 50 years at current consumption levels.
“ However, more recent research, including a 2019 study by the University of Nottingham and BGS, found that recoverable gas is likely ~10 times lower than previously thought, with estimates now suggesting no more than 10 years of supply at current demand under optimistic recovery assumptions.”
Given the propensity for outright lies ad complete fabrications by the ‘green lobby’ over decades I trust these ‘scientists’ as much as I would trust an angry puff adder.
Leave these number aside and let’s look at imports of LNG that substitute entirely for ay North Sea gas – negotiated by the UK’s trade ‘negotiators’.
“In 2022, the US supplied half of the UK’s LNG imports, marking a significant shift from Qatar’s previous dominance.
By 2024, 11% of the UK’s gas demand was met by LNG imports from the US, with the US being a major supplier amid declining North Sea production.
A typical UK household with a gas boiler is projected to pay £500 annually to overseas gas producers by 2035, with a significant portion of that going to LNG exporters like the US.
The UK’s overall spending on wholesale gas is expected to remain high—potentially above £35 billion annually through 2035 under current policies—driven largely by imports from the US and other LNG suppliers.
While exact payments to the US are not specified, the UK’s increasing reliance on US LNG, combined with high global gas prices, suggests substantial financial outflows to US exporters.
35 billion a year for the next ten years!
And the price of US LNG?
“While the actual price of US LNG is not quoted directly in oil barrels, the energy content of LNG can be converted to oil equivalent. Based on recent data, the current market price of crude oil in the UK is approximately £47.54 per barrel (as of February 11, 2026). This price is used as a benchmark for oil-indexed LNG contracts, meaning the final cost of imported US LNG is indirectly tied to the Brent crude oil price.
See if you can spot any correlation between oil prices US imported LNG and you UK electricity bill in the last 20 years!
The equivalent of the UK importing 700 million barrels of oil from the US every year. Around 2 million barrels A DAY!
The price is tied to Brent crude and is important for UK households.
“The UK’s payments for liquefied natural gas (LNG) imports from the United States are influenced by global market prices and import volumes, but specific annual payment figures for US LNG are not directly available in the provided data.
“Electricity prices in the UK are determined by the marginal cost of the last unit of electricity needed to meet demand, which is almost always generated by gas-fired power plants due to their ability to ramp up quickly when renewable sources like wind or solar are insufficient.
“Marginal Pricing Model: The UK uses a wholesale electricity market where the price for every half-hour period is set by the most expensive generator required to meet demand. Even if renewable sources supply the majority of electricity, gas plants—due to their high marginal cost—set the price when they are needed to balance supply and demand.
Gas as the Price-Setter: Despite gas accounting for only about 38–43% of UK electricity generation, it sets the wholesale price around 97–98% of the time, according to recent data. This is because gas plants are typically the last to be turned on during peak demand or low renewable output (e.g., when the wind isn’t blowing).
Global Gas Market Influence: The cost of natural gas is determined by global supply and demand, making it volatile. Events like the war in Ukraine caused gas prices to spike, directly driving up electricity prices—even for renewable energy.
Impact on Consumers: Because of this system, even households on 100% renewable energy tariffs pay the same rate as gas-generated electricity, as all suppliers receive the marginal price. This means falling renewable generation costs are not reflected in bills.
Potential Reforms: The UK government is considering market reforms such as zonal pricing (regional price setting) or decoupling renewables from the wholesale market to reduce reliance on gas as the price setter and better reflect the true cost of clean energy.
In short, gas-powered electricity prices are not based on how much gas is used, but on the cost of the most expensive source needed to meet demand—making gas the dominant factor in setting UK electricity prices.
Remember this fun fact:
“Electricity prices in the UK are determined by the marginal cost of the last unit of electricity needed to meet demand, which is almost always generated by gas-fired power plants due to their ability to ramp up quickly when renewable sources like wind or solar are insufficient.
And this:
“Even though renewable sources like wind and solar have very low operating costs, they do not set the price. Instead, because gas is often the most expensive source required to balance supply and demand (especially during peak times or when renewables are unavailable), its cost determines the wholesale electricity price. This is known as the merit order system.
What does all this mean?
The UK government has made a deliberate choice o import US LNG – linked o he price of crude oil to the tune of $35 billion bucks worth a year for ten years. It has chosen to guarantee prices for wind and solar for 20 years.
In other words, the UK has guaranteed monopoly pricing to two cartels – US shale producers and European power companies – paid for in household power bills. It has nothing to do with ‘green’ energy.
The utter insanity of Miliband knows no bounds.
Miliband plots solar farms in space in quest to hit net zero
So as you wade through all the boe and levelized costs per KWh set out by th shiny trousered energy wonks –remember the UK has enough resources to supply its own energy needs for decades, CO2 is plant food, there is no climate crisis and the high priests of ‘net zero’ are treasonous criminals bent on ripping off taxes and further impoverishing he poor, the sick and he elderly with insane theories that do not bear scrutiny.
Onwards!!!
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If shale gas involves fracking then the gas should be left where it is. Not only is fracking expensive it’s also environmentally destructive and dangerous to ground water, air and the ground people walk on. Fracking requires huge quantities of water injected at pressure along with just about every toxic chemical ending in cide. The now heavily polluted water then has to be disposed of and the fracking companies will, inevitable, seek to dispose of the poison at the cheapest possible cost. Take a look at Dimock In Pennsylvania.