Busy LNG delivery schedule helps prices amid firmer demand

Gas prices at the NBP held steady on Friday, with contracts appearing to be pulled in both directions by a busy LNG schedule and firmer demand.

Most contracts traded within a narrow range of their previous close, though the back end of the curve posted some larger downside.

A wave of incoming LNG cargoes continued to help with shipping data suggesting as many as 9 laden vessels could berth at UK terminals before the end of the month on top of 5 cargoes that have already arrived since Friday.

However, rising demand perhaps helped to provide a price floor, particularly for near dated contracts. National Grid data shows that UK gas demand increased by 23 mcm/d when compared with the previous gas day.

On the power side, baseload contracts posted a sharper day on day decline than their gas counterparts, largely driven by weakness in EUA futures.

After Thursday’s steep sell off, carbon prices continued to weigh on power markets, with ICE data showing EUA’s sliding to 70.68€/t, their lowest level since May.

The downturn comes amid comments from the German Chancellor suggesting the EU should consider revising or delaying aspects of its carbon market, citing concerns that ambitious climate policies could undermine industrial competitiveness.

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Price commentary courtesy of Crown Gas and Power