Prices edge higher amid news of gas pipeline maintenance
NBP gas prices edged higher on Wednesday as contracts continued to ebb and flow within a narrow range.
The majority of curve contracts saw small, incremental gains of circa 1p/therm (0.03p/kWh) when compared to their previous close amid a looming surge in Norwegian maintenance. According to data from offshore operator Gassco, planned maintenance across the Norwegian Continental Shelf (NCS) will be propelled to 139.77mcm by 30th August, with the latest round of offline capacity set to peak at 181.57mcm by 19th September. This is expected to significantly tighten exports to Great Britain via the Langeled interconnector.
Well above-average storage levels in Europe should help to offset some of the supply risks associated with the drop in flows, but any additional (unplanned) maintenance could have an amplified effect on sentiment during this time.
In other news, an arrest warrant has been issued by the German government in relation to the suspected sabotage of the Russia-Germany Nord Stream pipeline back in September 2022. A Ukrainian national with history working as a diving instructor is alleged to have dived 80 meters to the seabed in order to plant 4 controlled explosives used to cause severe structural damage.
German newspaper Die Ziet has reported that in June 2024 Germany had asked Poland (where the man was believed to be residing) to fulfil the warrant but it is believed that the suspect had already fled the country and continues to evade authorities.
This morning the market is relatively steady, with the Winter 24 front-season contract currently being offered very much in line with its previous settlement, at time of writing.
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Price commentary courtesy of Crown Gas and Power 