Gas shipper CNG to halt supplies to retailers

Gas shipper CNG Group is reportedly preparing to exit the wholesale market and has advised its clients to seek alternative sources of gas.

Bloomberg quoted chief executive Paul Stanley as saying the company had 18 utilities on its books that will need to find a new gas shipper “quickly”.

Meanwhile, Sky News has reported that CNG is also soliciting offers by the end of this week for its business retail arm that supplies more than 40,000 small and medium-sized companies.

The news outlet quoted a letter from Stanley to its customers, which said: “The past few weeks in the energy market have been unprecedented.

“Market volatility has caused many suppliers to exit the market in a short space of time, causing a significant amount of financial damage to CNG.

“We expect more suppliers to fail in the coming weeks, further compounding the issue.

“We have been exploring options to sustain CNG’s shipping services, but it is with regret that I have to inform you that we do not have any further option but to exit CNG’s wholesale business.”

A spokesperson for Ofgem said: “In recent weeks there has been an unprecedented increase in global gas prices which is unfortunately putting financial pressure on energy companies.

“Our number one priority is protecting customers. If a gas shipper stops trading, industry processes ensure that gas supplies continue uninterrupted.”

On Wednesday (13 October), two more suppliers – Pure Planet and Colorado Energy – were confirmed to be exiting the energy retail market, bringing the total for the year so far to 14.

There have been media reports that as many as five other suppliers could exit the market this week, with Sky News predicting Ampower, Zebra Energy and Neon Reef would be among them.