Gas prices up again amid storage worries

NBP gas prices were up again on Friday supported by uncertainty surrounding storage, geopolitics and fluctuating renewable output.

Unplanned British maintenance may have also played a role in maintaining upward momentum at the front-end of the curve.

According to data from National Gas REMIT, an unplanned outage began on Friday at the Bacton Terminal in Norfolk, removing a sizeable 27.3mcm/day of capacity. REMIT data confirms that the issue was resolved on Sunday evening.

Plentiful LNG supply likely helped to protect the market from further upside.

Shipping signals and Milford Haven Port data show that a total of 4 vessels arrived at British terminals across Friday and Saturday.

Comprising of Norwegian, US, Egyptian and Qatari cargoes; the diversity in origin of these shipments can largely be explained by relatively strong European spot prices when compared other markets, particularly East Asia.

This morning, gas prices have opened at a considerable discount when compared to Fridays close, with the Summer 25 front-season contract currently being offered circa 2.5p/therm (0.09p/kWh) below its previous settlement at time of writing.

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Price commentary courtesy of Crown Gas and Power