Wholesale prices stable amid strong gas imports from Norway
Gas prices were relatively unchanged at the NBP on Tuesday amid strong gas imports from Norway.
Lateral movement was observed across the curve, with small moves of no more than 0.2p/therm (0.007p/kWh) posted in each direction as the market fluctuated within a narrow range. Below average wind output continued to serve as an underlying source of support, especially at the front-end.
Wind generation across Great Britain averaged just 1.4GW across Tuesday’s gas-day, accounting for only around 4% of the generation stack, with gas-fired plants meeting around 60% of electricity demand across the same period (data from National Grid).
At the same time, while Norwegian imports remained strong, they did fall slightly amid lower nominations into the St Fergus terminal. With that said, data from Gassco shows that Easington flows held near nameplate capacity, meaning that pipeline imports fell by just 4.4% overall.
In other news, Tropical Storm Rafael has now been upgraded to a Category 1 Hurricane as it moves towards Cuba and other parts of the Caribbean and some oil and gas operators across the US East Coast are once again reducing output ahead of potentially dangerous conditions when the storm makes landfall early next week.
This morning, gas prices have opened in softer territory, with the Summer 25 front-season contract currently being offered circa 3p/therm (0.1p/kWh) below its previous settlement at time of writing.
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Price commentary courtesy of Crown Gas and Power 