Wholesale prices ease as gas supply routes open up

NBP gas prices eased on Monday after news of a potential new transit route and reinforced LNG supply combined to pressure the near-curve.

Bearish sentiment was most pronounced across contracts comprising the Summer 25 front-season, where losses averaged just under 4p/therm (0.14p/kWh) when compared to the previous close.

During morning trade, reports emerged that Kyiv had affirmed that they would be willing to transit Azeri gas via Ukrainian infrastructure for onward transmission to Central Europe. If such an agreement were to be struck, it holds the potential to alleviate concerns regarding reinjection demand over the warmer months, in the run up to next winter.

The resumption of two major Europe-facing LNG export facilities will have no doubt served to help ease pressure as well.

The operator of the Texas based Freeport LNG terminal, among the largest exporting to Europe, confirmed that all three liquefaction trains were starting to return to normal output as of yesterday.

Norway’s Arctic Hammerfest terminal is also back up and running amid multiple periods of unplanned maintenance over recent weeks.

This morning, contracts have opened at a slight premium when compared to yesterdays close, with the February 25 front-month contract currently being offered circa 1p/therm (0.03p/kWh) above its previous settlement, although many are yet to trade at time of writing.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power