Prices ease slightly amid strong supplies from Norway

NBP gas prices eased a little on Wednesday, bucking the upward trend that we have seen since the start of the year.

Prices held steady for much of the day, not straying too far from the previous sessions closing levels, however a late-afternoon sell-off managed to tip the balance, with small losses of circa 0.75p/therm (0.026p/kWh) being posted on the front-month and front-season contracts by the end of the day.

Consistently strong supplies from Norway helped to serve as a welcome source of help considering renewed uncertainty in other elements of the supply mix.

According to data from operator Gassco, flows into Easington terminal via the Norway-UK Langeled interconnector have held close to the maximum capacity since 11th January following the conclusion of partial maintenance at Troll, Europe’s largest operational gas field.

Lacklustre wind generation across Northwest Europe may have prevented NBP prices from declining further amid subsequently high gas-fired power demand.

Data from National Grid shows that wind output fell 20.5% day-on-day to just 6.2GW, gas-fired (CCGT) generation on the other hand increased to 20.3GW over the same period, making up a massive 77.8% of the power mix.

This morning, gas prices have so far resumed their downward trajectory, with the Summer 25 front-season contract currently being offered circa 1p/therm (0.034p/kWh) below its previous settlement, although many contracts have yet to trade at time of writing.

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Price commentary courtesy of Crown Gas and Power