ACTIVITY SURVEY 2014
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UK natural gas prices continued their steady recovery in 2013 from the recession-hit low in 2009. Reform and
renegotiation of continental term contracts and the post-Fukushima tightness of world liquefied natural gas (LNG)
markets both served to tighten the north-west European market again in 2013 amid near-stagnant UK gas demand.
The month ahead National Balancing Point (NBP) price averaged 67.1 pence/therm ($10.50/million British Thermal
Units (m BTU)) in 2013, the highest since liberalisation of the UK market in the mid-1990s. However, in dollar
terms, this was still below the previous peak of $11.40/m BTU in 2008. Relative to Brent, in 2013, NBP recovered
to the highest level since 2008, reaching $61/boe or 56 per cent of Brent in energy equivalent terms.
Figure 29: Dated Brent versus Month Ahead NBP Gas Prices
0
20
40
60
80
100
120
140
2008
2009
2010
2011
2012
2013
2014
Oil/Gas Price ($/boe)
Brent Oil
Front Month NBP
Source: EIA
