Gas prices jump up amid low LNG supply

Gas prices were propelled higher on Friday amid declining LNG supply and a bullish wider energy complex.

The biggest moves were observed at the front-end, with the April 24 front-month contract lifting circa 0.11p/kWh when compared to its previous close.

Near-dated prices have been affected from a gradual decline in LNG deliveries. Data from National Gas shows that LNG Sendout (within session) averaged circa 11mcm/day on Friday, a decrease of more than 88% when compared to the same day last year amid a lull in European imports of the fuel.

Contracts further out saw smaller gains, likely tracing upward moves on the carbon market. According to data from ICE, the Carbon EUA benchmark contract advanced 1.6% higher day-on-day, briefly touching the €60/tonne level before falling back.

In other news, flows at the Freeport LNG export terminal in Texas began to fall once again last week amid maintenance on the one of the facilities liquefaction trains, possibly eroding confidence in US LNG supply.

Prices continue to go up this morning, with the Summer 24 front-season contract currently being offered circa 0.14p/kWh above its previous settlement, at time of writing.

The UK is currently consuming just 31.99 GW’s of electricity at the time of writing (09:30 – 10:00), still helped by the mild temperatures we are experiencing at the moment.

Wind has fallen away today and is only generating 6.11 GW’s (17.76%) of electricity this morning. Gas is being used for the majority of the UK’s electricity this morning at 10.75 GW’s (31.26%).

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