Gas shipping business terminating its service to retail suppliers
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A Yorkshire-based company that supplies natural gas to utility companies has told its customers it can no longer continue its services.
CNG Group, based in Harrogate, is a gas shipping company that supports 15 to 20 retail energy suppliers via its wholesale business arm. It has contacted its customers advising them that they should find an alternative gas provider.
Sky News has reported that Interpath Advisory has set a Friday deadline for bids for the SME supply division of CNG Group, which is backed by the commodities trading giant Glencore.
This division directly supplies more than 40,000 small and medium-sized businesses.
CNG, which has been trading for more than 25 years, is only the latest company to be hit by record wholesale gas prices, which have caused some of its customers to fail.
A dozen retail energy suppliers have now failed since the start of August.
Paul Stanley, who took over as the company’s chief executive in early 2020, has told the Financial Times that CNG is working “constructively and collaboratively with industry counterparts to try to find the best possible outcome in these challenging conditions”.
Glencore said in a statement that it had provided “substantial financial support to CNG through challenging market conditions” and was “engaging with the regulator in the hope that a solution can be found”.