Prices ease slightly despite fresh supply disruptions
NBP gas prices eased on Tuesday, despite fresh supply disruptions across UK and Norwegian infrastructure.
Norway’s Aasta Hansteen joined Ormen Lange in unplanned maintenance, further curbing exports to the UK’s Easington terminal via the Langeled pipeline.
UK supply was also hit by unexpected outages at the Barrow treatment plant and the Alwyn and Culzean gas fields, cutting domestic capacity by 14.2mcm.
Meanwhile, upcoming US-Russia talks in Alaska have had a muted impact on the market, suggesting that risk may have already been priced into the curve.
Baseload power contracts tracked movements in gas markets, even as soaring temperatures across the continent raised concerns over nuclear output amid heightened cooling demand.
The French Gravelines nuclear facility failed to restart as scheduled yesterday, potentially due to the persistent ‘heat dome’ weather phenomenon gripping the region, which threatens to push temperatures beyond 40°C and strain reactor operations.
The stronger correlation between UK gas and power prices in recent sessions can likely be attributed to a heightened proportion of gas-fired power in the power generation mix, amid limited renewable output.
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Price commentary courtesy of Crown Gas and Power 