Strong LNG supply counters above average demand
Gas prices were divided on Wednesday as strong LNG supply countered above-average demand.
Minimal gains were posted on the prompt while contracts further out continued to trade within a narrow range.
A steady stream of LNG cargoes likely applied pressure to near-curve contracts, with two laden vessels arriving at British terminals on Wednesday.
Furthermore, data from National Gas shows that LNG send-out has remained above 100mcm/day for the second consecutive session, as the latest shipping signals indicate that up to six laden vessels could arrive at UK ports within the next nine days.
Additional data from National Gas shows that demand was forecast to outpace seasonal norms by circa 65mcm/day, possibly driven by an increase in heating related demand amid the ongoing cold snap.
This morning, gas prices have opened relatively unchanged when compared to their previous close, although many contracts are yet to trade at time of writing.
If we check the latest half hourly period at the time of writing (09:30 – 10:00), electricity demand has increased again to 43.39 GW’s in the UK.
Over 59% of the UK’s power is being generated from gas at the moment.
Specifically, 59.10% (26.11 GW’s) of the UK’s total electricity is being generated from gas currently with wind turbines the second biggest contributor at 6.75GW’s (15.27%).
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