Concerns over supply outages pushes wholesale prices up

Gas prices rebounded at the NBP on Tuesday amid supply concerns and Norwegian outages.

Contracts across the curve posted day-on-day gains with the largest moves of the session observed at the front-end once again; as the January-25 contract posted upside of around 4.25p/therm (0.15p/kWh) when compared to its previous settlement.

The European Commission has reaffirmed their position to end a transit deal between Russia and Ukraine, perhaps re-iginiting some pre-existing supply concerns. The current arrangement allows Russian flows to pass through interconnectors between two neighbouring countries and onto Europe’s Eastern and Central bloc, however the Commission has expressed they have no interest in Russian gas going into the new year.

Additionally, unexpected outages at Norwegian gas facilities perhaps help lift near-dated contract prices. According to offshore operator Gassco both the Kårstø and Gullfaks facilities saw reduced output due to processing issues, reducing available volumes by circa 20mcm/d.

This morning gas prices have retreated into bearish territory once again; with the Summer-25 front-season contract last offered around 2p/therm (0.07p/kWh) below its previous closing price at the time of writing.

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Price commentary courtesy of Crown Gas and Power