Gas crisis fears grow for industry

BRITAIN’S largest user of gas, chemicals producer Terra Nitrogen, has started to slow production because it cannot afford the latest huge rise in fuel prices.

Several glass manufacturers have been hit too, and are turning to emergency supplies of oil, which is now cheaper than gas, with potentially dire implications for carbon emissions.
These dramatic moves are a result of wholesale gas prices in the UK more than doubling in the past ten days from 36p a therm to 80p.

The cutback by Terra Nitrogen, based in Billingham, Cleveland, puts at risk the whole North-East chemical industry, which depends on the company for supplies. A spokesman said cutting production was ‘a very serious situation’.

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