Gas prices reduce further amid high storage levels
Plentiful LNG supply and exceptionally high EU storage levels helped reduce gas prices further on Monday.
Key contracts across the curve shed value with the largest moves of the session posted across the near-curve, with the Summer-24 front-season contract shedding a considerable 0.085p/kWh when compared to its previous settlement.
A steady supply of LNG likely acted as prime source of pressure at the front-end. The latest shipping signals indicate that up to five laden vessels could arrive on British shores by February 29th, with as many as three vessels scheduled to berth today. This comes in addition to three further LNG cargoes that arrived over the weekend.
Additionally, well-stocked continental storage likely helped by easing supply concerns. Data from Gas Infrastructure Europe shows that EU facilities currently sit at over 65% full, a substantial 12% higher than the five-year average.
This morning gas prices have opened in higher this morning, with the Winter-24 contract last offered around 0.03p/kWh higher when compared to its previous close.
In terms of electricity demand, if we check the latest half hourly period at the time of writing (09:00 – 09:30), electricity demand is currently 36.30 GW’s in the UK.
45.58% (17.13 GW’s) of the UK’s total electricity is being generated from wind turbines at the moment, with gas being used to generate 8.92 GW’s (23.73%).
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