Britain’s wholesale gas market involves the buying and selling of natural gas in Britain after it has arrived from offshore production sites. These include liquefied natural gas (LNG) terminals, storage sites, pipelines from other countries (such as Norway) and through interconnectors with Europe (in Belgium, Holland and Ireland).
The wholesale gas market in Britain has one price for gas irrespective of where the gas comes from. This is called the National Balancing Point (NBP) price of gas and is usually quoted in price per therm of gas.
Gas shippers, those who bring gas to Britain or transport within Britain, buy and sell gas and provide suppliers with gas so that they can provide it to end customers.
As well as complying with relevant UK and EU legislation and conditions of the various licences, gas transporters and shippers have to abide by conditions laid out in the industry-governed Uniform Network Code (UNC). Any changes to the UNC must be approved by us.
National Grid Gas plc is Britain’s System Operator. Among other duties, it is in charge of making sure that gas supply matches gas demand on a daily basis.