Markets ease amid expectation of increased gas flows from Norway
Gas prices maintained a downtrend continued at the NBP on Thursday, as markets awaited the restart of Norway’s Sleipner field.
The Small, incremental losses were posted across the majority of the curve, with contracts shedding risk premium built up across the week. Offshore operator Gassco maintained on Thursday that works were expected to be completed at the Sleipner R platform by Friday morning, allowing the Nyhamna facility to begin gradually ramping back up and paving the way for the return of exports to Great Britain.
The company’s maintenance schedule indicated that Nyhamna volumes will reach 56.4% of regular capacity from 5am UK time, prompting nominations at the Easington import terminal to surge from just 2.2mcm to 40.7mcm day-on-day.
Once again however, bearish sentiment was seemingly undermined by external factors; ICE data shows that the Brent Crude oil benchmark contract gained circa 1.9% when compared to its previous close, which, along with overstretched global LNG supply could have served as a price floor for European gas prices.
In other news, UK system operator National Gas published their annual Winter Outlook Review and Consultation, outlining a number of best and worst-case scenarios and speculating that the UK will remain as a net exporter to the European Union through its 3 primary interconnectors.
Gas prices are relatively unchanged so far this morning, with most being offered very much in line with their previous settlement, although many are yet to trade at time of writing.
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