Prices continue downward trend amid strong LNG send out
Gas prices continued their downwards trend for the sixth consecutive session on Wednesday.
Contracts across the curve lost value with the March-24 front-month contract shedding more than 0.034p/kWh when compared to its previous settlement, likely helped by below-average gas demand.
National Gas data shows that British demand totalled 228.1mcm on Wednesday, a drop of more than 10% drop when compared to the previous gas-day and 66mcm below seasonal norms.
On the LNG front, the latest shipping signals indicate that up to seven laden vessels could berth on British shores within the next eight days, likely providing additional help to the near-curve pricing.
This morning, gas prices have opened in slightly bullish territory with the Summer-24 contract last trading circa 0.05p/kWh above its closing price, however many contracts are heading back towards their previous settlement at time of writing.
In terms of electricity demand, if we check the latest half hourly period at the time of writing (09:30 – 10:00), electricity demand is currently 36.29 GW’s in the UK.
30.87% (11.56 GW’s) of the UK’s total electricity is being generated from wind turbines at the moment, with gas having to contribute 12.43 GW’s (33.19%).
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