UK Gas decreased 26.27 GBp/Thm or 20.95% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. UK Natural Gas - values, historical data, forecasts and news - updated on March of 2025.

British Gas is the largest supplier of natural gas for domestic consumers in Great Britain. As of the fourth quarter of 2023, it held a market share of roughly 27.8 percent. In the last year, Octopus Energy saw the most market share gains, these are in part associated with its acquisition of Shell Energy in the fourth quarter of 2023.

UK oil and gas production has diminished over the past decade because old oil fields have matured, and developing new commercially viable sources has become increasingly challenging. To combat this, extractors have pooled their resources and formed partnerships to enhance efficiency, while some have benefitted from previous investments in fields coming onstream. Oil and gas extracting companies also have reaped the rewards of an upsurge in global prices through 2022-23, leading to sharp revenue growth. However, this quickly turned around in 2023-24, with most major companies’ revenue nosediving along with oil prices. Revenue is expected to expand at a compound annual rate of 3.4% over the five years through 2024-25 to just over £33 billion. This includes a forecast hike of 5.3% in 2024-25; however, profit is slated to inch downward over the year as global oil and gas prices remain somewhat flat in the second half of 2024-25. The industry's performance is greatly affected by world oil and gas prices, with supply cuts put into place by the Organisation of the Petroleum Exporting Countries (OPEC) and global tensions resulting in price peaks and troughs. In October 2022, OPEC instituted a supply cut of two million barrels of crude oil per day, driving Brent Crude Oil prices up to US$110 (£87.80) per barrel, which has been extended until March 2025, with a ramping up period through September 2025. The sanctions on Russian oil and gas imports because of the Russia-Ukraine conflict add further impetus to prices. The EU has banned imports of Russian-made oil and gas, providing opportunities for UK exporters. Crude oil prices remain high, but significant oil production from non-OPEC countries threatening a glut in the oil market and a significant dip in global demand (especially from China) have made oil prices tumble sharply since July 2024. Despite mounting tensions in the Middle East having the potential to cut oil supply from the region, the ongoing political tensions have yet to significantly impact global prices, with prices hiking up around 10% in the month to October 2024, but remaining relatively low. Oil and gas prices are likely to continue inching downwards in the coming years as America is forecast to continue ramping up the global oil and gas supply. This, along with an expected reduction in global demand for oil and gas in the long term, will limit growth. The UK government will implement policies to create a more favourable environment for extractors and further investment in the North Sea to improve UK energy security. However, the depletion of natural resources, the expensive cost of extraction, low gas and oil prices and the global energy transition will threaten the industry's long-term viability. The government announced a delay to the ban on the sale of new petrol and diesel cars, along with the relaxation of some net-zero policies in September 2023, which should keep fossil fuel explorers afloat for longer. Revenue is forecast to rise at a compound annual rate of 3.4% over the five years through 2029-30 to just over £39 billion.

The National Balancing Point (NBP), the UK's natural gas benchmark, amounted to 100.9 British pence per therm on March 17, 2025, for contracts with delivery in April. A month prior, prices had reached a 2-year-high amid colder weather and storage concerns. Prices are generally higher in the winter months due to greater gas heating demand, especially in weeks of colder weather. The UK NBP, along with the Dutch TTF, serve as benchmarks for natural gas prices in Europe. Impact on consumer prices and household expenditure post-2022 Fluctuations in wholesale natural gas prices often have immediate impacts on UK consumers. In 2023, the consumer price index for gas in the UK rose to 195 index points, using 2015 as the base year. This increase has translated into higher household expenditure on gas, which reached approximately 24.89 billion British pounds in 2023. This figure represents a 23 percent increase from the previous year and a staggering 91 percent rise compared to two years earlier, highlighting the growing financial burden on UK households. Consumption patterns and supply challenges The residential and commercial sector remain the largest consumers of natural gas in the UK, using an estimated 40.7 billion cubic meters in 2023. This was followed by the power sector, which consumed about 15 billion cubic meters. The UK's reliance on gas imports has grown due to declining domestic production. This shift has led to an increased dependence on liquefied natural gas imports and pipeline inflows to meet demand.

The North Sea Region Oil & Gas Market is segmented by Sector (Upstream, Midstream, and Downstream), and Geography (UK, Norway, and Rest of North Sea Region).

Natural gas increased 0.21 USD/MMBtu or 5.84% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Natural gas - values, historical data, forecasts and news - updated on March of 2025.

The average gas price in Great Britain in January 2025 was 123.02 British pence per therm. This was 50 pence higher than the same month the year prior and follows a trend of increasing gas prices. Energy prices in the UK Energy prices in the UK were exceptionally high in 2021-2022 due to an energy supply shortage as a result of lower pipeline supplies from Norway and Russia, as well as reduced LNG imports owing to greater purchases by customers in Asia. Multiple factors such as a lack of gas storage availability and the large share of gas in heating have exacerbated the supply issue in the UK. This led to multiple suppliers announcing bankruptcy, while an upped price cap threatened energy security of numerous households. The United Kingdom has some of the highest household electricity prices worldwide. How is gas used in the UK? According to a 2023 survey conducted by the UK Department for Energy Security and Net Zero, 58 percent of respondents used gas as a heating method during the winter months. On average, household expenditure on energy from gas in the UK stood at some 24.9 billion British pounds in 2023.

Daily data showing SAP of gas, and rolling seven-day average, traded in Great Britain over the On-the-Day Commodity Market (OCM). These are official statistics in development. Source: National Gas Transmission.

The report covers UK Midstream Oil and Gas Companies and the market is segmented by Transportation, Storage, and LNG Terminals.

The residential and commercial sector accounted for most of the natural gas consumption in the United Kingdom from 2018 to 2023. The residential and commercial sector's natural gas consumption decreased from an estimated 43 billion cubic meters in 2022 to an estimated 41 billion cubic meters in 2023. Meanwhile, the power generation sector was ranked second, with a natural gas consumption of an estimated 15 billion cubic meters in 2023.

Expert industry market research on the Gas Supply in the UK (2013-2031). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

Natural gas producers are facing turbulent times. Europe has traditionally relied on Russia and Norway as internal sources of natural gas, while countries such as the US, Qatar and Algeria are a major source of imports. Russia’s invasion of Ukraine has shaken up Europe’s natural gas supply structure, with European governments making efforts to reduce their dependence on Russian gas supplies. Revenue is forecast to fall at a compound annual rate of 4.4% to €71.6 billion over the five years through 2024. Revenue expanded in 2021 as a sharp hike in natural gas prices and a post-pandemic rise in demand drove an increase in exploration and production activity. Russia’s invasion of Ukraine led to a spike in natural gas prices, with the impacts of reduced demand for gas and a decrease in Russian gas production outweighed by soaring wholesale prices and heightened demand for other natural gas reserves, spurring a jump in revenue. An ongoing reduction in demand for natural gas and easing prices caused revenue to dip in 2023. This trend is expected to continue into 2024, when revenue is slated to fall by 57%. Revenue is forecast to rise at a compound annual rate of 11.9% over the five years through 2029 to €125.3 billion. The gas market will continue to be shaped by geopolitical tensions into the medium term, with the International Energy Agency expecting natural gas prices to remain high until 2025 as countries continue to shift their supply structure. Following this, natural gas demand and prices are set to fall as Europe continues to expand its renewables capacity.

There were 40 enterprises in the United Kingdom oil and gas extraction industry with an annual turnover of more than five million British pounds as of 2023. By comparison, there were 15 such businesses with an annual turnover of less than 50,000 British pounds.

Forecast: Industry Sector Final Consumption of Natural Gas in the UK 2024 - 2028 Discover more data with ReportLinker!

The United Kingdom offshore oil and gas decommissioning market is segmented by water depth (shallow water, deep water, and ultra-deep water). The report offers the market size and forecasts in revenue (USD billion) for all the above segments.

Industrial gas manufacturing revenue is slated to inch upwards at a compound annual rate of 0.7% over the five years through 2024-25, reaching £1.4 billion. Manufacturers suffered from soaring costs due to a surge in natural gas prices in 2022-23, although some of the hike in costs was passed on to customers through higher prices. Before this, the COVID-19 pandemic brought about significant disruption to the numerous downstream industries that rely on industrial gases, like steel product manufacturers, cutting demand and limiting sales in 2020-21. Growing environmental concerns have allowed industrial gas manufacturers to market their gases and mixtures as greener alternatives to traditional polluting chemicals. However, demand for harmful industrial gases has fallen as regulations tighten and companies seek to lower their carbon footprint. A surge in oil and gas prices caused revenue to jump following Russia’s invasion of Ukraine, though operating profit took a hit as manufacturers struggled to recoup all of the cost increases. Revenue is slated to fall by 8.7% in 2024-25, reflecting a fall in natural gas prices and a readjustment in industrial gas sales prices. However, sales volumes are set to remain mostly flat. Industrial gas manufacturing revenue is expected to hike at a compound annual rate of 1.1% to just over £1.5 billion over the five years through 2029-30. Industrial gas manufacturers are expected to benefit from higher demand for clean gases to replace polluting chemicals as new mixtures are developed and existing gases are used in new ways. Manufacturers are also expected to reap the perks of the growing demand for hydrogen for energy production. However, reductions in the government's R&D tax relief for SMEs mean that demand for some gases from research facilities and small industrial manufacturers may drop.

TTF Gas decreased 8.92 EUR/MWh or 17.69% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. EU Natural Gas TTF - values, historical data, forecasts and news - updated on March of 2025.

The turnover of the extraction of crude petroleum and natural gas industry in the United Kingdom increased by 4.7 billion euros (+17.98 percent) in 2018 in comparison to the previous year. In total, the turnover amounted to 31 billion euros in 2018. For the purpose of Eurstat Dataset NACE Rev.2 Section K turnover comprises the totals invoiced by the observation unit during the reference period, which corresponds to market sales of goods or services supplied to third parties.Find more statistics on other topics about the United Kingdom with key insights such as turnover of the mining and quarrying industry, number of employees in the extraction of crude petroleum and natural gas industry, and personnel costs of the extraction of crude petroleum and natural gas industry.

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Smart Gas Market Size 2024-2028

The smart gas market size is forecast to increase by USD 18.48 billion at a CAGR of 14.76% between 2023 and 2028. The market is experiencing significant growth, driven by various factors including government regulations and initiatives, such as the push towards energy efficiency and the promotion of renewable energy sources. Another major trend is the development of smart cities, which require advanced energy management systems to ensure the efficient and sustainable use of resources. However, the integration of smart gas into existing infrastructure can be challenging due to the need for digitalization and the potential for measurement inaccuracies. The market also faces challenges, including infrastructural and standardization issues. The existing gas infrastructure is not always compatible with smart gas technologies, and there is a need for standardization to ensure interoperability and compatibility among different systems Despite these challenges, the market is expected to continue growing, driven by the increasing demand for energy efficiency and the integration of renewable energy sources into the gas grid.

What will be the Size of the Market During the Forecast Period?

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The integration of smart technologies into the natural gas sector is revolutionizing energy management and distribution in North America. This transformation is driven by the need to address aging infrastructure, increasing energy demand, and the imperative to reduce carbon emissions. Smart grid technology plays a pivotal role in this evolution, enabling self-healing networks that optimize energy flow and minimize wastage. Advanced metering infrastructure (AMI) is a key component of this technology, offering real-time monitoring and bill payments, ensuring consumer trust and accuracy. The implementation of energy management systems (EMS) is another critical aspect of smart gas technologies.

Moreover, these systems provide real-time information on energy usage and consumption patterns, enabling cost savings and energy conservation. Furthermore, they facilitate the integration of renewable energy sources, enhancing overall energy efficiency. The urbanization trend in North America necessitates a focus on urban safety. Smart gas technologies offer a solution by enabling remote monitoring and real-time response to potential issues in gas pipelines. This proactive approach to infrastructure maintenance reduces the risk of gas leaks and other safety concerns, ensuring the reliability and security of the gas supply. Moreover, investment in smart gas technologies offers significant market potential. The Energy Efficiency Directive, a regulatory initiative aimed at improving energy efficiency, provides incentives for the adoption of smart technologies.

Furthermore, the potential cost savings and the reduction of natural gas wastage make this a compelling investment opportunity for stakeholders in the energy sector. Security services are another area where smart gas technologies add value. Real-time monitoring and advanced analytics enable early detection and response to potential threats, enhancing the overall security of the gas infrastructure. In conclusion, the integration of smart technologies into the natural gas sector offers numerous benefits, including improved energy efficiency, reduced wastage, enhanced safety, and increased consumer trust. As urbanization continues and energy demand grows, the need for smart gas technologies becomes increasingly apparent. The market potential for these technologies is significant, making it an attractive investment opportunity for stakeholders in the energy sector.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Device

  Automatic meter reading (AMR)
  Advanced meter infrastructure (AMI)


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Device Insights

The automatic meter reading (AMR) segment is estimated to witness significant growth during the forecast period. Advanced Metering Reports (AMR) systems enable seamless communication between natural gas consumers and utility companies. These systems facilitate one-directional data transfer from gas meters to a central database, automating the process of collecting gas consumption, diagnostic, and status information. By eliminating the need for manual meter readings, AMR technology ensures accurate billing and provides consumers with valuable insights into their gas usage patterns. Gas utilities increasingly favor AMR systems over traditional meters due to their efficiency and convenience. AMR technology