Reduced wind output increases demand gas fired electricity generation

Lower wind output and offshore maintenance increased gas prices at the NBP on Wednesday.

Curve contracts edged higher for the third consecutive session, with both the front-month and front-season contracts reaching their highest closing prices since September 3rd.

Declining wind generation likely offered support to contracts at the front-end, according to data from National Grid, wind turbine output decreased by almost 20% when compared to the previous session which subsequently bolstered gas-fired generation (CCGT) which saw a subsequent daily increase of around 26% in order to help balance the electricity grid.

Offline capacity in both the UK and Norway will not have helped the situation. Data from National Gas (GB REMIT) shows that throughput at the Perenco Bacton terminal was reduced by 2.6mcm across the gas-day, alongside unplanned injection unavailability at the Atwick storage facility.

Over in Norway, the Sleipner B platform remains offline following a suspected fire that occurred early on Tuesday, removing 7.1mcm/d for an uncertain duration.

This morning, contracts have so far resumed their upward trajectory with the Summer 25 front-season contract currently being offered circa 2p/therm (0.07p/kWh) higher when compared to its previous settlement at time of writing.

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Price commentary courtesy of Crown Gas and Power