Nuclear power reactors operational life span extended
Gas prices eased at the NBP on Wednesday, amid bearish carbon and despite a firm demand outlook.
The biggest reductions were posted at the front-end, with the January 25 front-month contract plummeting by circa 3.9p/therm (0.13p/kWh) when compared to its previous close.
According to data from ICE, the Carbon EUA benchmark contract fell by around €0.63/tonne day-on-day, contributing to declines across the wider energy complex (oil, coal etc).
The ongoing tight demand outlook likely served as an underlying source of concern and prevented deeper losses. The latest run of our 14 day model indicates that demand will average above seasonal norms until at least 18th December amid forecasts of cooler temperatures moving further into December.
In other news, EDF has confirmed that 4 of its UK nuclear reactors will see their operational lifespan extended. For the second time, EDF has extended the life of the Heysham 2 and Torness nuclear plants built in 1988, and both are now expected to remain online for an additional two years until 2030, helping to subdue long term gas-fired power demand outlook.
NBP prices have resumed their downward trajectory this morning, with the Summer 25 front-season contract currently being offered circa 1p/therm (0.03p/kWh) below its previous settlement, although many are yet to trade at time of writing.
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Price commentary courtesy of Crown Gas and Power 