Prices edge lower as LNG supply picks up

Gas price edged lower at the NBP on Wednesday as market participants eyed an uptick in LNG supply and EU storage edges toward the 83% target.

The Leshatt docked at the UK’s Isle of Grain terminal on Monday, offloading volumes from the Plaquemines facility in Louisiana. As of this morning, six LNG vessels are signalling for British terminals—four from the US, one from Qatar, and one from Peru—bolstering the short-term supply outlook.

EU storage stood at 82.86% on Monday, just shy of the mandated 83% target for 1st December. Meanwhile, both UK-EU interconnectors remain inactive due to unfavourable price spreads, leaving the British system predominately oversupplied.

Baseload power prices continued to decline, diverging from the strength seen in crude and carbon benchmarks.

The move reflects a downward trend in gas prices, driven by a modest accumulation of supply in Great Britain that is potentially lowering the cost of gas-fired generation, a key component of the UK’s energy mix.

At the same time, power imports from neighbouring countries remained muted, as UK temperatures held closer to seasonal norms when compared to the rest of Europe.

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Price commentary courtesy of Crown Gas and Power