Prices up amid tumbling wind generation
Gas prices inched higher on Monday amid tumbling wind generation and a need to attract LNG vessels.
The majority of curve contracts posted small, incremental moves of no more than 0.034p/kWh when compared to their previous close amid tighter supply fundamentals.
Data from National Grid shows wind power generation dropped 50% when compared to Fridays gas-day; this subsequently boosted CCGT (Combined Cycle Gas Turbine) power demand which increased 144% when compared to the previous session.
A growing need to attract LNG cargoes also likely played into the bullish sentiment with the recent downtrend in prompt prices putting other regions at a premium to the European market.
The latest shipping signals indicate that the Malaga Knutsen, which was originally scheduled to arrive at Milford Haven on February 6th has diverted course and is now heading for Chile.
NBP contracts have opened relatively unchanged this morning, with most being offered very much in line with their previous settlement, at time of writing.
If we check the latest half hourly period at the time of writing (10:00 – 10:30), electricity demand is currently 37.65 GW’s in the UK.
Wind generation is up today and contributing almost 28% of the UK’s total electricity demand.
Specifically, 27.65% (10.80 GW’s) of the UK’s total electricity is being generated from wind turbines currently with gas contributing 13.67 GW’s (35.00%).
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