Prices up again amid firm LNG demand in East Asia
Prices at the NBP carried on going up on Wednesday, supported by firm LNG demand in East Asia and unplanned maintenance in Norway.
Modest gains were seen across the curve, with fundamentals continuing to shape sentiment in the absence of major global developments.
Record temperatures across East Asia (China, Japan, Korea) amid a persistent heatwave risk boosting LNG demand, lifting European prices to stay competitive on the spot market.
Buying activity in the region, however, remains muted for now. New maintenance at Norway’s Kårstø facility has cut processing by 16.5mcm/day, though it doesn’t feed into the Langeled pipeline to the UK, allowing British imports to ultimately rise day-on-day.
UK power prices saw mixed movement on Wednesday, with small moves posted in both directions as the market responded to a balance of steady supply and shifting demand signals.
Wind output remained subdued, feeding underlying support into the near-curve.
Interconnector flows continued to reinforce supplies, with imports across Monday and Tuesday averaging at the highest rate since March and comprising more than 22% of the GB power mix across Wednesday.
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Price commentary courtesy of Crown Gas and Power 