Gas prices continue upward trajectory today
Natural gas prices continued their upwards trajectory on Monday 11th September 2023 amid tight Norwegian supply and fears surrounding the Freeport LNG facility.
The biggest gains were once again posted at the front-end with near curve contracts lifting by around 3p/therm (0.1p/kWh) when compared to their previous close.
Contracts may have extended Fridays gains in response to extensive maintenance across key Norwegian infrastructure. According to data from offshore operator Gassco, unplanned maintenance at the Aasta Hansteen and Visund fields removed a total of 33.7mcm/day due to ‘corrective maintenance’, when combined with planned maintenance total offline capacity remained elevated at 209.34mcm/day across the gas-day.
Gas prices may also have found strength from news of an unplanned outage at the Texas Freeport LNG facility. The major US export facility was taken offline by an explosion last June resulting in a 6-month long disruption to global LNG supplies.
News emerged over the weekend that flows into the plant had unexpectedly plunged by over 80%, stoking fears that the facility could once again be taken offline at a time when Europe is heavily dependent on US shipments of the fuel to keep its storages topped up in preparation for winter.
In other news, Chevron has reportedly initiated an ‘intractable bargaining process’ with the Australian Fair Work Commission, after the energy giant failed to settle a dispute with workers at its Gorgon and Wheatstone facilities in Western Australia. The news came following the beginning of industrial action last week, with a full walkout expected to go ahead from Thursday if a resolution cannot be reached.
This morning gas prices have opened in softer territory, with the Winter 23 front-season contract currently being offered circa 1.5p/therm (0.05p/kWh) below its previous settlement at time of writing
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