Gas Prices Spike in the UK

Natural gas prices in the UK rose on Thursday but quickly fell after a hoax bomb threat against a key gas processing plant in Norway.

The plant in Nyhamna is connected to the giant Ormen Lange field, which supplies 20% of the UK's daily demand. Front-month futures rose as high as 330 pence per therm, a two-week high, before completely reversing their move to stand at 292.7p/th as of 05:30 ET (09:30 GMT), after Norwegian police said they were "clarifying" the incident. Earlier reports said the processing plant had to be completely evacuated after police received the first warning. The incident comes at a time of heightened concerns over the security of Europe's energy supplies after Russia, traditionally the continent's largest gas supplier, cut off almost all shipments to pressure EU countries and the UK to end their support for Ukraine. Last month, the Nord Stream pipeline, which carries Russian gas under the Baltic Sea to Germany, was sabotaged, and Norwegian authorities have reported sightings of drones flying around offshore oil and gas installations. In Ukraine, Russia this week began deliberately targeting the country's electricity supply with missile strikes, hitting power plants and grid facilities across the country. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!