LNG vessels arriving in UK helps gas prices
A steady stream of LNG vessels and healthy continental storage levels helped reduce gas prices on Tuesday.
Prices across the curve continued their downwards momentum with the largest moves once again posted at the front-end; the Summer-24 contract shed circa 0.19/kWh day-on-day, breaking the key support level of 100p/therm. This is the first time in 26 months a front-season contract has traded below 100p/therm!
High European storage likely helped prices at the front-end. According to the latest data from Gas Infrastructure Europe, continental storage currently stands just over 93% capacity around 3% higher when compared to the same day last year.
Plentiful LNG supply also added further weight to prices with the latest shipping signals indicating 9 laden vessels are on the horizon. Data from the Port of Milford Haven shows 2 vessels are scheduled to offload volumes at the South Hook terminal before the end of this week.
This morning, gas prices have opened firm at the NBP, with the January-23 contract last trading around 0.1p/kWh above its previous closing price at time of writing.
If we check the latest half hourly period at the time of writing (11:30 – 12.00), electricity demand in the UK is 44.20 GW’s.
54.71% (24.21 GW’s) is being generated from gas at the moment with wind turbines contributing 6.17 GW’s (13.95%). Nuclear is contributing at 10.72% (4.75 GW’s) and solar adding 3.59 GW’s (8.10%).
The 4 main sources of electricity account for over 87% of the UK’s generation.
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