Prices divided with strong wind helping prompt prices

Gas prices were divided on Friday as strong wind output eased prompt prices while a slump in LNG send-out meant that prices went up further out.

According to data from National Gas, wind-generated power saw an uptick of over 33% day-on-day on Wednesday. The surge in output subsequently reduced reliance on CCGT (combined cycle gas turbine) offtake which saw a drop of 73% when compared to the previous gas day, likely applying pressure to prompt prices.

However, additional data from National Gas shows that LNG send-out fell by more than 31% when compared to the previous session, likely providing support to near-dated contracts.

The January-24 front-month contract posted the largest moves of the session and rose 0.07p/kWh when compared to it preceding closing price.

Prices further out followed a similar sentiment, potentially lifted by a strengthening carbon market. Data from ICE shows the EUA benchmark contract moved up circa 3.75/tonne on Wednesday, the largest session-on-session gain since the 3rd of March.

This morning gas prices have continued their upwards momentum with the Summer-24 contract last offered circa 0.1p/therm above its previous settlement at time of writing.

If we check the latest half hourly period at the time of writing (09:30 – 10:00), electricity demand in the UK is 36.60 GW’s.

Fortunately, the UK is still be buffeted with high winds which is helping reduce our gas demand.

Only 7.22% (2.81 GW’s) of the total electricity is being generated from gas at the moment with wind turbines contributing a massive 21.44 GW’s (55.05%). Nuclear remains as the next biggest contributor at 12.62% (4.91 GW’s).

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