Prices edge higher amid accelerated phase out of Russian gas
NBP prices edged higher on Wednesday as the EU and US align on rhetoric regarding an accelerated phase out of Russian energy imports.
Flows from Norway, who excluding Russia, is now the largest producer in Europe, is set to recover after planned maintenance, but will still hold at lower levels until the first week of October when full flows return.
Consistently strong LNG imports are serving as a price ceiling for European gas hubs. The Qatari vessel ‘Tembek’ arrived at Milford Haven yesterday and a further two vessels are scheduled to arrive by 4th October.
Power prices continued their upward trajectory, though bullishness was muted further out after the carbon market pulled back from a 7-month high, easing costs within the wholesale element of the far-curve.
Despite a slight dip in renewables versus last week, combined wind, solar and hydro generation remains strong, keeping demand for gas-fired (CCGT) power to a minimum.
British nuclear generation is notably weak as of late, accounting for just 8.4% (2.4GW average) of the GB power mix on Wednesday which is around half that of the average output recorded in the last quarter.
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Price commentary courtesy of Crown Gas and Power 