Unseasonably low demand and strong LNG send out helps reduce prices
Gas prices continued their downward trend on Tuesday, amid forecasts of unseasonably low demand and strong LNG supply.
Small, incremental losses of circa 0.034p/kWh were posted across the near-curve when compared to the previous close, as robust and diverse supplies remain one step ahead of winter demand.
According to data from National Gas; British demand totaled 260.7mcm across the gas-day, a considerable 34.6mcm below the seasonal norm, mainly thanks to milder temperatures (which are also expected to continue across weeks 7 and 8).
It’s also likely that consistently high LNG volumes helped the situation, with the latest shipping signals showing that as many as 7 laden vessels could arrive at UK terminals over the next 7 days.
The Energy Intelligence arrived at South Hook No 2 terminal on Tuesday morning, which helped to propel send out to a rate of over 50mcm/d (data from the Port of Milford Haven).
In other news, French Energy Giant TotalEnergies SE has expressed security concerns regarding their new development in Mozambique following reports of violence instigated by Islamic State fighters just 85 miles away from the new LNG facility.
Key contracts continue to head south this morning, with the March 24 front-month contract currently being offered at circa 0.034p/kWh below its previous settlement, at time of writing.
In terms of electricity demand, if we check the latest half hourly period at the time of writing (08:30 – 09:00), electricity demand is currently 34.47 GW’s in the UK.
25.13% (9.15 GW’s) of the UK’s total electricity is being generated from wind turbines at the moment, with gas having to contribute 13.46 GW’s (36.98%).
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