Wholesale prices increase as competition for LNG hots up
Gas prices resumed their upward trajectory at the NBP on Tuesday amid a competitive LNG market and bullish oil futures.
The near-curve continued to advance at a rate of circa 2p/therm (0.07p/kWh) when compared to its previous close, with news of another large Egyptian LNG tender feeding into the bullish sentiment. The Egyptian General Petroleum Corporation (EGPC) reportedly intends to purchase 15-20 cargoes of LNG for delivery in Q1 2025, in a move that could further tighten UK LNG imports which have fallen substantially so far in October when compared to the same period in 2023.
Further pressure may have emerged as gas prices traced moves on Europe’s primary oil benchmark. According to data from ICE, the Brent Crude Dec-24 contract surged 2.4% day-on-day, with the contract seemingly rebounding from the monthly lows posted last Friday.
The NBP continues to edge higher this morning, with the Summer 25 front-season contract currently being offered circa 0.75p/therm (0.026p/kWh) above its previous settlement, at time of writing.
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Price commentary courtesy of Crown Gas and Power 