News of Centrica closing gas storage facility forces prices up

NBP gas prices corrected higher on Friday but still managed to close at a small weekly discount amid a more risk-off market sentiment.

News that Centrica plc was looking to close the major Rough gas storage facility due to operational losses of £50-100 million per year may have offered underlying support.

The site, which initially closed in 2017, was brought back online in 2022 following a drive to increase regional storage capacity following the onset of the Russia-Ukraine war.

Rough accounts for around half of all storage capacity in the UK, so its closure may have helped to lift the far-curve.

British gas demand ticked up slightly on Friday but is still expected to average just below seasonal norms across the next couple of weeks.

Forecasts of increased renewable generation in Week 31 exerted downward pressure on prompt baseload prices, despite broader strength across the wider energy complex—particularly in gas and carbon markets—supporting contracts further out.

Data from Elexon pointed to improved wind output heading into the week, which is expected to reduce reliance on costly gas-fired generation.

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Price commentary courtesy of Crown Gas and Power