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Glencore-backed CNG Supports Worsening Energy Crisis As It Calls For Bids In Days |  Economic news


A commercial energy supplier backed by Glencore, the commodities trading giant FTSE-100, is soliciting bids for its commercial supply arm in days, underlining the growing nature of the crisis engulfing the industry.

Sky News has learned that CNG Group advisers are seeking bids for the part of its operations that directly supplies more than 40,000 small and medium-sized businesses by the end of the week.

News of the offer deadline comes as CNG prepares to pull out of the wholesale gas market, telling its commercial customers on Wednesday that it would no longer facilitate their gas supply.

CNG has in the past acted as a shipper for energy suppliers such as Bulb and Octopus Energy, although its remaining domestic supply customers are considered to be much smaller.

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The global impact of rising energy prices

A number of utilities for which he acts as a shipper have collapsed in recent weeks as the energy crisis engulfed the UK residential market.

In a letter to customers seen by Sky News, CNG chief executive Paul Stanley said: “The last few weeks in the energy market have been unprecedented.

“Market volatility caused many suppliers to exit the market in a short period of time, causing significant financial damage to GNC.

“We expect more vendors to fail in the coming weeks, which will make the problem even worse.

“We have explored options to maintain CNG’s shipping services, but it is with regret that I must inform you that we have no choice but to exit CNG’s wholesale business.”

Sky News recently revealed that CNG hired Interpath Advisory to undertake a rapid strategic review.

Glencore, one of Britain’s largest listed companies, is “a long-standing supplier [to] and shareholder of the group ”, according to the latest set of CNG accounts filed with Companies House.