High storage levels across Europe helps combat the cold snap

High European storage levels and an uptick in renewable energy generation combined to further help gas prices on Tuesday.

Contract prices across the curve posted modest losses when compared to their previous settlement with the largest moves of the session once again seen the front-end; the February-24 contract shed around 0.03p/kWh when compared to its previous closing price.

Well-stocked continental storage likely played as a prime source of pressure, easing winter supply concerns.

The latest data from Gas Infrastructure Europe shows European storage is over 83% full despite the recent cold snap.

Additional help perhaps came from an increase in wind-generated power. According to data from National Gas, wind-output saw an uptick of 20% day-on-day on Tuesday. The surge in output subsequently reduced reliance on CCGT (combined cycle gas turbine) offtake which saw a drop of around 4% when compared to the previous gas day.

This morning gas have opened very much in line with their closing settlement.

If we check the latest half hourly period at the time of writing (10:00 – 10:30), electricity demand has increased again to 43.69 GW’s in the UK.

Over 55% of the UK’s power is being generated from gas at the moment.

Specifically, 55.32% (24.32 GW’s) of the UK’s total electricity is being generated from gas currently with wind turbines the second biggest contributor at 8.20GW’s (18.64%).

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