Low gas storage levels across Europe pressures NBP gas prices
NBP prices held largely steady on Tuesday, maintaining the strength built over recent sessions as rapidly declining European storage took centre stage for market participants.
Gas Infrastructure Europe data showed continental stocks at 53.17% on Monday the 12th. This is 12.5% below last year and nearly 27% lower than in 2024.
A prolonged spell of sub-zero temperatures across Europe has sharply eroded reserves, raising concerns about the region’s ability to replenish inventories in time for next winter.
LNG will remain crucial to summer restocking, and both arrivals and the US spot market will continue to be monitored with a laser focus.
Moves on the gas NBP filtered through to the baseload power curve, with falling renewables and increases to carbon prices also adding to the pressure pot.
Elexon data shows that wind power generation fell to an average of 12GW on Tuesday, a sharp decrease of 35.5% when compared to Monday that buoyed CCGT (gas-fired) demand.
According to data from ICE, the Carbon EUA benchmark contract closed at €90/tonne, its highest settlement since July 2023.
Heightened fossil fuel generation has been seen across the continent as the power systems of neighbouring countries struggle to meet heightened demand in the face of prolonged cold and dry conditions.
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Price commentary courtesy of Crown Gas and Power 