Gas prices retrace helped by climbing Norwegian supply

Gas prices retraced on Wednesday, helped by climbing Norwegian supply and a bearish wider energy complex.

Considerable losses of circa 0.15p/kWh were posted across the curve, resulting in the partial erasure of gains posted across what amounted to 4 days of increases.

The conclusion of unplanned maintenance at Norway’s Nyhamna gas processing facility gave way to a rebound in exports to the UK. According to data from offshore operator Gassco, flows into Britain’s Easington and St Fergus terminals increased by 30% when compared to the previous gas-day.

Bearish moves posted across oil, carbon and coal benchmarks may have also helped to prices ease further out. Data from ICE shows the Carbon EUA benchmark contract plummeted by 5%, recoiling from the year-to-date high that was reached in the previous session.

In other news, operator Fluxys confirmed that the UK-Belgium Interconnector will shut down for 15 days of planned maintenance this September, limiting UK exports to continental Europe towards the end of the storage injection season.

Prices continue to head south this morning, with the Winter 24 front-season contract currently being offered circa 0.05p/kWh below its previous settlement, at time of writing.

The UK is currently consuming 35.22 GW’s of electricity (09:30 – 10:00).

Wind is currently generating less power today at 6.85 GW’s (18.24%) of the UK’s total electricity with gas having to contribute more today at 7.92 GW’s (21.07%) at the time of writing.

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