Gas prices react over tight LNG outlook

Growing concerns over tighter LNG supply increased gas prices on Friday.

The largest increases of the session were posted at the front-end with the majority of key contracts gaining around 0.03p/kWh when compared to their previous close.

A bleak LNG outlook likely played a big part in the increases. According to the latest shipping signals, just two laden vessels are currently expected to berth on British shores by the end of the March.

However, an increase in wind-generated power limited any further gains being made. Data from National Grid shows that wind-output increased by more than 23% when compared to the previous gas day, this likely contributed to a decrease in CCGT (combined cycle gas turbine) offtake which subsequently fell by a huge 55% over the same period.

This morning gas prices have opened lower with the Winter-24 contract lasting trading around 0.05p/kWh below its previous settlement.

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