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Highlights
- The UK Government has struck a deal with CF Industries to restart CO2 production at Ince, Cheshire and Billingham, Teesside plants.
- The CO2 shortage may negatively impact several crucial industries and this move will help avert the disruptions.
Recently, a deal has been finalised between the UK government and the US firm CF Industries regarding the restarting of carbon dioxide production at its UK plants in Ince, Cheshire and Billingham, Teesside. Due to a spike in global natural gas prices, the fertilizer company had stopped the CO2 production at its UK-based plants a few days ago.
Amid the current energy crisis, it is important to ensure the continuous supply of CO2 for the food sector, and thus the operating costs of the manufacturer will be paid for by the taxpayers.
According to the Department for Business, Energy and Industrial Strategy, the agreement will hold for three weeks along with the process of adaptation of the CO2 market with the rising global gas prices. Business secretary Kwasi Kwarteng said that the move will avoid the disruption in CO2 supply to several critical sectors.
Approximately 60% of the food-grade CO2 used in the UK came from the CF Industries before the production was stopped. The details of the deal are still unknown, though it is being anticipated that within a few days, consumers and shoppers will start noticing that a wide range of products, such as poultry and pork to baked goods, aren’t available in the market due to the shortage.
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Let’s take a look at some of the top energy stocks in the UK which may be impacted the news.
Iog PLC (LON: IOG)
Headquartered in London, Iog PLC, previously known as Independent Oil and Gas plc, is a UK-based gas company which explores and develops oil and gas assets in the Southern North Sea. With a market capitalisation of £133.37 million, the company is listed on the London Stock Exchange since 2013 and is also a constituent of the FTSE AIM All-Share index. Its Earnings per share is -0.04 and its 1-year return is 100.74%. The previous close price of Iog PLC’s shares was GBX 27.25 as on 21 September 2021.
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Enquest Plc (LON: ENQ)
Headquartered in London, Enquest Plc is a UK-based oil and gas production and development company which operates in the UK North Sea and Malaysia. It has main listing on the London Stock Exchange since 2010 as well as a secondary listing on the Nasdaq OMX Stockholm. With a market capitalisation of £436.59 million, the company is a constituent of the FTSE All-Share index. Its Earnings per share is -0.27 and its 1-year return is 111.02%. The previous close price of Enquest Plc’s shares was GBX 23.15 as on 21 September 2021.
JKX Oil & Gas plc (LON:JKX)
Headquartered in London, JKX Oil & Gas plc is a UK-based hydrocarbon exploration and production company which mainly focuses on Eastern Europe and has significant assets in Russia and Ukraine. With a market capitalisation of £79.85 million, the company is listed on the London Stock Exchange since 1995. Its Earnings per share is 0.13 and its 1-year return is 187.39%. The previous close price of JKX Oil & Gas plc’s shares was GBX 46.50 as on 21 September 2021.
IGAS Energy PLC (LON:IGAS)
Headquartered in Sudbrooke, IGAS Energy PLC is a UK-based onshore oil and gas exploration and production company which aims to supply energy in Britain in a safe and environment friendly manner. With a market capitalisation of £26.08 million, the company is listed on the London Stock Exchange since 2007 and is also a constituent of the FTSE AIM All-Share index. Its Earnings per share is -0.41 and its 1-year return is 68.42%. The previous close price of IGAS Energy PLC’s shares was GBX 20.80 as on 21 September 2021.
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