Prices drop amid strong LNG imports
The market eased during afternoon trade on Thursday, breaking below a long-term level of 74p/therm and hitting an 18-month low for the Summer 2026 front-season contract.
Strong LNG exports to Europe likely served as a primary source of help for the near-curve.
Shipping data shows that 7 vessels are signalling for arrival at Milford Haven’s two regasification terminals over the next fortnight, though persistently low prompt prices in the UK resulted in the ship ‘Umm Ghuwailina’, which spent several days circling off the UK coast, going to Jordan when they bid more money for the cargo.
Another ship, ‘Flex Vigilant’ is currently showing similar ‘circling’ behaviour just offshore, seemingly awaiting favourable spot prices before entering port.
Baseload power prices followed a similar downward trajectory in yesterday’s session.
Bearishness on the natural gas market, amid plentiful LNG and Norwegian pipeline supply exerted pressure across the curve.
Wind generation has been holding steady at just over 40% of the GB power mix over the past few days but an anticipated downturn in renewables next week (following Storm Claudia) alongside a forecasted increase in gas demand perhaps limited the extent of the losses.
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Price commentary courtesy of Crown Gas and Power 