Gas prices down again as wind generation increases
Gas prices slumped on Friday as an uptick in wind output and falling gas fired demand eased the pressure on near-dated contracts.
The largest losses of the session were posted at the front-end with the January front-month contract dropping 0.15p/kWh when compared to it’s previous settlement.
A prime source of pressure likely came from a surge in wind generated power which saw a substantial 34% day-on-day increase according to data from National Gas, this subsequently reduced the need for CCGT (combined cycle gas turbine) offtake which dropped around 19%.
Additionally, an increase in Norwegian gas flows likely helped. According to data from offshore operator Gassco, nominations into the Easington and St Fergus terminals rose by more than 3% when compared to the previous session.
This morning, gas prices have opened in slightly higher, with the Summer-24 contract last offered around 0.02p/kWh above its previous closing price, however many contracts are yet to trade at time of writing.
If we check the latest half hourly period at the time of writing (09:00 – 09:30), electricity demand in the UK is 37.09 GW’s.
Only 27.59% (10.69 GW’s) of the total is being generated from gas at the moment with wind turbines contributing more at 16.37 GW’s (42.16%). Nuclear remains as the next biggest contributor at 12.05% (4.67 GW’s).
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