Prices rebound as new heatwave drives demand
NBP gas prices rebounded upwards slightly on Tuesday after struggling to find support below 90p/therm.
Exports via the UK’s BBL, IUK, and Moffat interconnectors averaged a combined 69mcm/d throughout the session—the highest level recorded since August 2024—as a new heatwave drives temperatures (and consequently cooling-related power demand) sharply higher across continental Europe, significantly more so than in Great Britain.
An unplanned outage at the UK’s Perenco Dimlington facility, caused by a compressor issue, removed 4.7mcm from the system during the session, further tightening the supply and demand balance by reducing processing capacity for the six fields that feed into it.
A similar upward trend was observed in power prices, driven by increased cooling demand across the continent, which in turn boosted gas-for-power demand.
This coincided with a sharp decline in renewable generation, which fell to a 22.8% share—down from 38.2% on Monday. Heatwaves also tend to constrain nuclear output due to efficiency and safety concerns.
France, home to the world’s second-largest nuclear fleet and a key player in balancing the power systems of neighbouring countries, has been among the most affected by the soaring temperatures.
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Price commentary courtesy of Crown Gas and Power 