Unchanged supply fundamentals reduces wholesale prices

NBP gas prices reduced again at close of trading on Friday but stopped short of closing lower week-on-week amid largely unchanged supply and demand fundamentals.

Following the conclusion of works at Norway’s Nyhamna processing plant at the beginning of last week, Langeled to Great Britain flows were holding at around 45mcm/d, around 64% of the pipeline’s nameplate (maximum) capacity, as planned works continued along other supply routes.

National Gas data shows that LNG storage levels across the UK’s three import terminals has now slipped below the same time last year (9GWh vs 10GWh) though two vessels are currently signalling for the UK over the next few weeks which should help to reinforce this area of supply.

The baseload power curve also a displayed a bearish tone but, much like gas, did not manage to undercut the closing levels of the previous week.

Renewables averaged higher last week and are looking strong at the start of week 37.

The biggest losses were posted along the prompt and near-curve on the back of lower gas-fired demand as well as small increases in solar and nuclear generation.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power