Gas price rises ease amid good news from Norway
Gas prices reversed course on Friday, with robust storage levels and an announcement from Norway’s Equinor helping to put an end to the recent upward trajectory.
The 4-day bull run came to an abrupt end, with the Winter 24 front-season contract tumbling almost 0.1p/kWh below its previous close.
Above average storage levels likely helped; according to the latest data Gas Infrastructure Europe facilities across the EU are now 68.2% full which is a substantial 12 percentage points above the 5-year moving average, helping to reinforce confidence in supplies ahead of winter.
News of enhanced production at Norway’s major Troll field may have extended the bearish sentiment to contracts further out. State-owned operator Equinor said on Friday that funding has been approved to upgrade aging infrastructure and add 8 new wells to the field which is already the largest in the Europe as Norway continues to consolidate its role as the predominant producer in the region.
Gas prices have opened very much in line at the NBP this morning, although many have yet trade at time of writing.
The UK is currently consuming 28.38 GW’s of electricity (09:00 – 09:30).
The UK’s onshore and offshore wind turbines are currently generating 6.47 GW’s (21.08%) of the UK’s total electricity with solar at 1.49 GW’s (4.84%), Nuclear at 4.69 GW’s (15.28%), imports at 6.81GW’s (22.20%) and gas for power generating 6.42 GW’s (20.91%) of the total.
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