Increased imports from Norway helps wholesale prices
NBP gas prices struggled to establish a clear direction on Tuesday as strong Norwegian imports were offset against higher demand.
According to data from ICE, the Winter 25 contract posted the biggest losses beyond the prompt after declining by circa 1.5p/therm (0.05p/kWh) with comparatively subtle movement observed across the majority of contracts.
A steady increase in Norwegian pipeline supplies over the past few weeks likely applied has helped front end pricing. According to data from offshore operator Gassco, Langeled pipeline exports into Easington terminal reached their highest level since 2nd April and are now at near maximum capacity.
Norwegian flows made up around 40% of forecasted demand on Wednesday, falling just short of UK production which accounted for more than 45% of supply over the same period (data from National Gas).
It wasn’t plain sailing however, with a sharp drop in wind output serving to bolster gas-fired power generation. Data from National Grid shows that wind turbine output fell by 52% when compared to Tuesday, with gas-fired (CCGT) demand subsequently lifting by 34% to help offset the short fall.
This morning, gas prices are seemingly in retreat with the Summer 25 front-season contract currently being offered circa 1p/therm (0.034p/kWh) below its previous settlement at time of writing.
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Price commentary courtesy of Crown Gas and Power 