Prices rise as concerns over storage levels increase

Gas prices at the NBP shifted higher during afternoon trade on Wednesday, despite stronger renewable energy generation and muted demand.

Market uncertainty, stemming from significantly below-average storage levels across Europe, is likely continuing to pressure prices for summer delivery as injection requirements tighten the regional supply and demand balance.

According to data from Gas Infrastructure Europe, aggregate EU storage stood at 35.96% full as of 15th April. This is a substantial 26.36% below the same date last year and almost 11% below the five-year average.

It remains unclear if ongoing talks amongst member states aimed at easing the flexibility and pace of injections will help to address the current storage concerns.

Taking a look at the power sector, National Grid data shows that wind turbine generation averaged 15.1 GW across Wednesday, up from just 4.3 GW on Tuesday, accounting for 44.9% of generation.

This, in turn, suppressed the need for gas-fired (CCGT) generation over the same period.

This morning, the market has resumed its upward trajectory, with the Winter 25 front-season contract currently being offered approximately 0.75p/therm (0.026 p/kWh) higher when compared to its previous settlement, although many contracts have yet to trade as of the time of writing.

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Price commentary courtesy of Crown Gas and Power