Gas prices up amid unplanned maintenance
Unplanned Norwegian maintenance and a bleak LNG outlook forced gas prices up on Wednesday.
The majority of contracts posted small gains of around 0.03p/kWh when compared to their previous settlements, largely on the back of unscheduled works to the Norwegian Kollsnes facility.
According to data from offshore operator Gassco, 16.1mcm/d was taken offline during Wednesday’s session due to corrective maintenance; however, an update this morning shows works have already been partially completed.
Low levels of LNG cargoes didn’t help the situation, with the latest shipping signals indicating that no vessels are expected to berth on British shores over the coming weeks.
However, an uptick in wind generated helped to keep a lid on further gains being made. Data from National Grid shows wind-output increased by a massive 70% when compared to the previous gas day, subsequently reducing the need for CCGT (combined cycle gas turbine) offtake which fell by more than 45% when compared to the same period.
This morning gas prices have eased a little with the Winter-24 contract last traded at circa 0.03p/kWh below its previous closing price.
The UK is currently consuming 35.63 GW’s of electricity at the time of writing (10:30 – 11:00).
Wind is currently contributing 16.39 GW’s (43.50%) of the UK’s electricity generation at the time of writing. Gas is currently only having to contribute 3.24 GW’s (8.60%) of the total.
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