Demand falls amid cooler temperatures across Europe

A bearish start to the week as gas prices resumed their downward trajectory amid recovering Norwegian exports and despite the Israel-Iran conflict.

According to data from offshore operator Gassco, Norway-UK flow nominations via the Langeled interconnector more than doubled from 20.5mcm on Friday to 49.3mcm on yesterday.

Concluding maintenance, along with increased capacity at the Oseberg field, contributed to the ramp up in supply.

NBP weakness and minimal gas-fired demand helped ease baseload power prices on Monday.

National Grid data shows that renewables (wind, solar and hydro) met 61.8% of British power demand on Monday, with gas (CCGT) plants contributing just 11.3%, down even further from 22.1% on Friday.

Lowering temps across Europe may have also contributed to the ease demand pressure, as the conclusion of the ‘Spanish plume’ heatwave brings cooling demand close to seasonal norms.

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Price commentary courtesy of Crown Gas and Power