Gas prices up amid decreasing LNG supply

Gas prices were up marginally on Tuesday amid decreasing LNG send-out and a bearish oil market.

Lateral movement was seen across the curve, with most key contracts climbing by circa than 0.03p/kWh when compared to their previous close.

Data from National Gas shows that LNG send-out decreased for the second consecutive session, likely providing the prime source of increases to near-curve contracts. Despite the recent flurry of LNG cargoes, send-out has fallen by more than 9% when compared to the same day last week.

However, a weakening oil market perhaps limited any further increases. According to ICE, the Brent Crude benchmark contract fell on Monday by circa 1.5% when compared to the previous session.

In other news, Norwegian state-owned operator Equinor announced that scheduled maintenance to gas facilities will be less prevalent than they were in 2023, which may potentially ease supply concerns over the usual summertime maintenance period.

The decision comes amid restricted Russian gas flows to Europe and extended delivery times of LNG (liquified natural gas).

This morning gas prices have continued to trade within a narrow range of their previous settlement, however many contracts are yet to trade at time of writing.

In terms of electricity demand, if we check the latest half hourly period at the time of writing (10:00 – 10:30), electricity demand is currently 35.98 GW’s in the UK.

It’s windy today! 55.71% (20.83 GW’s) of the UK’s total electricity is being generated from wind turbines at the moment, with gas being used to generate only 3.98 GW’s (10.64%) of electricity currently.

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