Small gains reported amid higher LNG import prices from USA

Small gains recorded on Wednesday as the market eyed higher US LNG export prices.

LNG has arisen as a vital source of supply since the Invasion of Ukraine in 2022 and the destruction of the major Nord Stream pipeline that same year.

So far this year, the UK has received 129 cargoes (102 last year). This increase has been driven in large part by a rapid expansion of export capacity along the US East Coast.

The US has contributed to 73.6% of all arrivals this year, up from 62.7% in 2024. A major price component for the spot market is the Henry Hub, the primary wholesale market in the US.

High export demand from Europe has contributed to recent strength which is squeezing margins, in turn supporting the NBP price in order to remain competitive.

Similar bullishness observed for power prices in yesterday’s session. A substantial increase in wind power generation likely served as a price ceiling for the near-curve but support from the NBP (with which power prices are very much interlinked) and lingering strength on the carbon market still managed to propel prices higher.

Elexon data shows that wind turbine output more than doubled from Tuesday (7.2GW to 16.8GW) though gas demand fell to a lesser extent amid higher system demand and a drop in interconnector imports from neighbouring countries such as France and Norway.

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Price commentary courtesy of Crown Gas and Power