Price reductions limited by unplanned gas supply outage

NBP gas prices resumed its downward trajectory on Thursday, though downside was limited by a technical correction later in the afternoon, with pricing seemingly catching its breath after steep losses on Wednesday.

Supply side disruption from Europe’s largest pipeline supplier, Norway, may have prompted a more cautious trading environment. According to data from operator Gassco, the Troll field saw an unplanned loss of 21.9mcm/d due to a compressor failure.

At the same time, the Kårstø processing facility lost an additional 5mcm/d due to process problems, though both issues are corrected as of this morning.

Alongside LNG imports, Norwegian supply will play a crucial role in adequately refilling continental storage facilities this summer.

Power contracts also saw more cautious losses in line with the wider energy complex, as increased optimism for the Iran conflict was weighed against a pattern of ceasefire breaches and an uncertain timeline for the implementation of measures to support safe shipping via the Strait of Hormuz.

From a generation perspective, wind continues to outturn at lower levels, reinforcing gas-fired power demand, which has served as the largest source of power in Great Britain so far this week, bringing more volatility into prompt pricing.

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