Financial Times FT.com

BG price protection combats ‘gas-glut’

By Ed Crooks in London

Published: May 1 2009 21:51 | Last updated: May 1 2009 21:51

This is not a good time to be in the gas business. Rising supplies from new projects coming on stream have met faltering demand from businesses battered by the global recession, creating a “gas glut”.

While the price of oil has risen this year, the price of gas has continued to decline. This year the benchmark gas price has dropped about 40 per cent in the US and 51 per cent in the UK.

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