Prices swing lower amid plentiful LNG supply and steady pipeline flows

NPB gas prices swung lower on Tuesday, with intraday volatility still elevated as participants weigh strong LNG supply and steady pipeline flows against below average storage levels in the continent.

The Summer 26 front-season contract posted its largest daily move so far in February after shedding 3.8% of its value day-on-day.

LNG continues to flood the British gas system, helping to largely offset elevated demand forecasts across the next couple of weeks.

According to the latest shipping signals, 3 vessels are currently circling offshore likely in response to rapid price shifts and changeable weather conditions, though 11 vessels are expected to arrive over the next couple of weeks, highlighting plentiful, flexible supply on the global spot market.

The power market also observed substantial downside that has continued into this morning.

Bearishness across the wider energy complex (natural gas, crude oil, carbon and coal) served as a key source of pressure by unwinding the cost of fossil fuel generation across the wider region.

A slight uptick in nuclear power also played into bearish sentiment, with an additional 0.5GW of output versus the same time last week as some constraints eased.

Wind power rose slightly, averaging only slightly below gas (10.9GW vs 13.3GW).

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Price commentary courtesy of Crown Gas and Power