Prices correct upwards as UK restarts gas exports to Europe

Gas prices corrected higher on Tuesday as UK export flows to continental Europe restarted.

Planned maintenance on the IUK (UK-Belgium) interconnector has now concluded and flows began to ramp back up toward typical levels on Tuesday afternoon.

Higher LNG sendout, alongside steady Norwegian pipeline flows are contributing to ample supply in Great Britain.

Shipping data indicates that a further two cargoes arrived at LNG terminals on Tuesday, and, despite one diversion to France’s Dunkerque terminal, 7 vessels are expected to arrive by 7th November.

EU storage levels continue to fluctuate above and below the target of 83% fullness as cool temperatures slow the rate of injections.

Less pronounced increases were observed along the baseload power curve as strengthening renewable generation countered bullish natural gas prices.

According to data from Elexon, wind generation averaged 11.4GW across Tuesday, comprising around 35% of the GB power mix and suppressing the gas-for-power demand.

Elsewhere along the wider energy complex, crude oil prices remain muted amid wider macro-economic concerns, particularly trade tensions between the US and China.

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Price commentary courtesy of Crown Gas and Power