Gas prices divided amid low LNG supply
Gas prices were divided on Wednesday fluctuating within a narrow range when compared to the volatility seen within the last week.
The Winter-24 front-season contract gained just 0.01p/kWh when compared to its previous close. A continuation of low LNG arrivals were likely the main cause of concern.
The latest shipping signals indicate that three laden vessels are expected to berth over the next 7-days. According to Milford Haven port data, the “Seapeak Arwa” was expected to offload US volumes yesterday evening but has since been delayed and is now expected to berth today.
High wind-output perhaps prevented any substantial gains being made. Data from National Grid shows that wind-generated power contributed a huge 45% to overall demand throughout Wednesday’s gas day, which subsequently reduced the reliance on CCGT (combined cycle gas turbine) offtake which accounted for just 12% of power generation when compared to the same period.
Gas prices have opened firmly this morning, with the Winter-24 contract last trading around 0.14p/kW above its previous settlement.
The UK is currently consuming 33.93 GW’s of electricity (09:30 – 10:00).
Wind is currently generating 13.19 GW’s (36.31%) of the UK’s electricity with gas only having to contribute 3.42 GW’s (9.41%) at the time of writing.
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