Wholesale prices edge higher as wind output drops

Gas prices edged higher at the NBP on Friday amid lower wind output and rising British demand.

The prompt and near-curve contracts registered the biggest moves of the session, due in part to a slump in wind generation. According to data from National Grid, wind power fell by around 36% when compared to Thursday, with gas-for-power generation rising by circa 74% across the same period in order to supplement the power generation mix.

Overall British gas demand saw an increase of 8.2% when compared to the previous gas day (data from National Gas) and the latest run of our 14-day model indicates that demand will average well-above seasonal norms across week 37.

This will coincide with ongoing maintenance on the Langeled pipeline for the bulk of Norway-UK exports, though the peak of seasonal maintenance should now be behind us after peaking this weekend.

This morning, gas prices have opened slightly higher when compared to Fridays close, with the Winter 24 front-season contract currently being offered circa 1p/therm (0.03p/kWh) above its previous settlement at time of writing.

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Price commentary courtesy of Crown Gas and Power