UK gas wholesale prices shot up by more than 50% to a record high, after the pipeline pumping gas between Britain and Belgium shut down unexpectedly due to a technical fault.
The operator of the pipeline said: "The fault has been identified and we are seeking to rectify the problem. We remain unable to flow gas."
The UK gas market has been under severe strain after weeks of unseasonably cold weather drained gas supplies.
Forecasts released on Thursday suggest that Britain's gas supplies could run out next month, forcing the nation to pay higher prices for fuel from elsewhere.
If the pipeline remains shut for a number of days, Britain's grid operator would be forced to trigger all emergency supply options, which could involve negotiating agreements with big gas users to cut their demand.
Traders said that would cause an even higher spike in gas prices. But National Grid said it did not expect that to happen.
A spokesman said: "The cold weather is causing a bit of over-excitement here. Gas data shows the position at the end of the day will be quite healthy."
Gas prices for delivery on the same day spiked at 150p a therm on Friday, following the pipeline shutdown. They have since eased to 124p a therm, but are still 27% higher on the day.
A gas trader at a utility told Reuters: "I don't think the price has ever been higher. It's certainly super-spike territory. The worrying thing is it can probably go higher."
Current forecasts show gas supplies in the UK could theoretically be exhausted by 8 April, requiring Britain to turn to imports from Norway and Russia.
Separately, Scottish and Southern Energy, one of the UK's biggest power suppliers, warned on Thursday that there could be electricity blackouts in the country within three years.
guardian.co.uk
The operator of the pipeline said: "The fault has been identified and we are seeking to rectify the problem. We remain unable to flow gas."
The UK gas market has been under severe strain after weeks of unseasonably cold weather drained gas supplies.
Forecasts released on Thursday suggest that Britain's gas supplies could run out next month, forcing the nation to pay higher prices for fuel from elsewhere.
If the pipeline remains shut for a number of days, Britain's grid operator would be forced to trigger all emergency supply options, which could involve negotiating agreements with big gas users to cut their demand.
Traders said that would cause an even higher spike in gas prices. But National Grid said it did not expect that to happen.
A spokesman said: "The cold weather is causing a bit of over-excitement here. Gas data shows the position at the end of the day will be quite healthy."
Gas prices for delivery on the same day spiked at 150p a therm on Friday, following the pipeline shutdown. They have since eased to 124p a therm, but are still 27% higher on the day.
A gas trader at a utility told Reuters: "I don't think the price has ever been higher. It's certainly super-spike territory. The worrying thing is it can probably go higher."
Current forecasts show gas supplies in the UK could theoretically be exhausted by 8 April, requiring Britain to turn to imports from Norway and Russia.
Separately, Scottish and Southern Energy, one of the UK's biggest power suppliers, warned on Thursday that there could be electricity blackouts in the country within three years.
guardian.co.uk
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