Wholesale market stable as American LNG supply route reopens

Gas prices were relatively stable at the NBP on Monday amid a spell of Norwegian outages and resumed operations at the Freeport LNG export terminal.

Most contracts traded within a narrow range of their previous settlements with many near-dated contracts shedding around 0.5p/therm (0.017p/kWh) when compared to their previous closing price.

The reductions could likely be attributed to a resumption of operations at Texas’s Freeport LNG which perhaps eased some supply concerns. The facility was recently taken offline as a precautionary measure amid adverse weather conditions caused by Hurricane Beryl, with reports showing that at least 10 cargoes have been cancelled as a result. The facility has begun a partial restart but is yet to reach 100% capacity.

A flurry of unexpected outages at Norwegian facilities likely provided a floor for prices, limiting any substantial reduction to wholesale prices.

According to Norway’s state operator Gassco, outages at Visund and Kristin facilities reduced available capacities by 18mcm/d in addition to the already reduced volumes due to planned summertime maintenance. The unplanned works seemingly unnerved the market, however the outage at Kristin appears to have already be resolved.

This morning gas prices have opened relatively in line with their previous settlements at the NBP.

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Price commentary courtesy of Crown Gas and Power