Wholesale prices edge lower as supply disruptions subside

NBP gas prices edged lower into Fridays close as short-term supply disruptions subsided.

According to data from Norwegian operator Gassco, pipeline flows into Great Britain rose to 46.8mcm, a sharp increase from 19mcm recorded on Thursday, as capacity at the Nyhamna and Kollsnes processing facilities came back online following the failure of an external power supply.

The UK relied heavily on domestic storage to fill the gap in supplies in the latter half of last week, with levels standing at just over 8 GWh as of Sunday, well below the 19.3 GWh recorded on the same date last year.

UK power prices edged lower on Friday, mirroring weakness in the NBP gas curve.

Despite the bearish sentiment, the power market remained structurally tight, with Combined-Cycle Gas Turbines (CCGTs) continuing to dominate the generation mix.

Renewable output was limited, as both wind and solar generation remained subdued, reinforcing reliance on gas-fired generation to meet system demand.

The tight supply-demand balance served as a price floor, tempering further downside across the power curve.

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Price commentary courtesy of Crown Gas and Power