Gas prices up again amid major US LNG setback

Gas prices were forced up again on Wednesday amid fresh Russian supply concerns and a major US LNG setback.

The biggest moves were posted at the front-end, with the June 24 front-month contract being propelled circa 0.12p/kWh above its previous close.

Long after the majority of Russian pipeline flows were halted back in 2022, a court ruling between state-owned Gazprom and an (as yet unnamed) company threatens to jeopardize some of the last remaining westbound Russian gas exports.

Austrian operator OMV warned on Wednesday that essentially all of Austria’s pipeline exports could be suspended by the decision, which in turn has the potential to impact European storage injections ahead of winter.

On the LNG front, news that the lead contractor of the ‘Texas LNG’ export facility, Zachry Holdings, has filed for chapter 11 bankruptcy protection. The $10 billion facility was set to come online as early as 2025 but this now seems unlikely, knocking hopes of rising US LNG exports in the near-term.

This morning, contracts continue to strengthen on the back of yesterday’s news.

The Winter 24 front-season contract is currently being offered an additional 0.1p/kWh above its previous settlement at time of writing.

The UK is currently consuming 31.01 GW’s of electricity (10:00 – 10:30).

The UK’s onshore and offshore wind turbines are currently generating a massive 14.05 GW’s (42.03%) of the UK’s total electricity with solar generation at 4.42 GW’s (13.23%), Nuclear at 4.53 GW’s (13.56%) and gas for power generating just 1.99 GW’s (5.96%) of the total.

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