Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:


High Gas Prices Cause Chemical Production Shut Down


High and volatile UK gas prices reached new levels over the last few days and have left some chemical companies no choice but to shut down operations. The Chemical Industries Association (CIA) now calls upon the DTI and OFGEM to take immediate, urgent action to resolve the situation before sites are closed down and companies make the decision not to manufacture in the UK.

The gas system operator, Transco, stated at a meeting today that there is ample gas to meet demand. Judith Hackitt, Director General of CIA, responded by saying, “There appears to be no rational explanation for the market’s behaviour. Our earlier calls for greater transparency and better explanation of the market are now truly urgent. These price hikes go way beyond what can be explained by a temporary spell of cold weather.”

The CIA gave evidence at a recent Trade and Industry Committee Inquiry that set out to investigate the high forward gas prices observed in October 2004. In the evidence received, it was reported that many companies had amended their contract strategies to be linked to spot prices – but this is now hurting too.

Following this contract strategy has meant that chemical companies have only two options: to pay £1 per therm (thermal unit) or close down operations.

The UK chemical industry can no longer absorb these extremely high and volatile gas prices, which have a knock-on impact to electricity costs. Current gas prices are seriously damaging UK industry competitiveness and in many energy intensive sectors, short-term stops may lead to longer-term job losses. If gas prices remain at this level the economic impact could be severe.

Lizzy Ray | alfa
Further information:

More articles from Life Sciences:

nachricht Novel mechanisms of action discovered for the skin cancer medication Imiquimod
21.10.2016 | Technische Universität München

nachricht Second research flight into zero gravity
21.10.2016 | Universität Zürich

All articles from Life Sciences >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: New 3-D wiring technique brings scalable quantum computers closer to reality

Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.

"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...

Im Focus: Scientists develop a semiconductor nanocomposite material that moves in response to light

In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.

A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...

Im Focus: Diamonds aren't forever: Sandia, Harvard team create first quantum computer bridge

By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.

"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...

Im Focus: New Products - Highlights of COMPAMED 2016

COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.

In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...

Im Focus: Ultra-thin ferroelectric material for next-generation electronics

'Ferroelectric' materials can switch between different states of electrical polarization in response to an external electric field. This flexibility means they show promise for many applications, for example in electronic devices and computer memory. Current ferroelectric materials are highly valued for their thermal and chemical stability and rapid electro-mechanical responses, but creating a material that is scalable down to the tiny sizes needed for technologies like silicon-based semiconductors (Si-based CMOS) has proven challenging.

Now, Hiroshi Funakubo and co-workers at the Tokyo Institute of Technology, in collaboration with researchers across Japan, have conducted experiments to...

All Focus news of the innovation-report >>>



Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

Agricultural Trade Developments and Potentials in Central Asia and the South Caucasus

14.10.2016 | Event News

World Health Summit – Day Three: A Call to Action

12.10.2016 | Event News

Latest News

Resolving the mystery of preeclampsia

21.10.2016 | Health and Medicine

Stanford researchers create new special-purpose computer that may someday save us billions

21.10.2016 | Information Technology

From ancient fossils to future cars

21.10.2016 | Materials Sciences

More VideoLinks >>>