Strong LNG flows and conclusion of maintenance work helps ease prices

The conclusion of unplanned maintenance combined with higher LNG flows helped ease gas prices on Thursday.

The biggest moves were posted across prompt and near-curve contracts, with the new March-24 front-month contract shedding circa 0.085p/kWh when compared to its previous close.

An increase in Norwegian and UK supply likely helped ease prices at the front-end; data from offshore operator Gassco shows that capacity restrictions totalling 16mcm/d at Norway’s Kollsnes plant had been resolved, alongside the conclusion of UK maintenance totalling 10.8mcm/d (data from National Gas).

Furthermore, an increase in LNG supply likely boosted bearish sentiment; National Gas data shows that sendout saw an increase of over 40% when compared to Wednesday’s session. Dwindling EU storage reserves may have however propped up contracts further out along the curve where some contracts posted small gains.

The latest data from Gas Infrastructure Europe shows that levels are now 2 percentage points below the same date last year, after months of holding above the levels of the prior year.

In other news, the US House of Representatives is set to hold a vote over the next couple of weeks that could overturn the governments freeze on the development of new LNG export infrastructure that was announced last Friday.

The vote comes just weeks after the US was crowned as the world’s largest exporter of LNG for the first time in 2023.

Key NBP contracts have so far continued their downward trajectory this morning, with the Summer 24 front-season contract currently being offered circa 0.034p/kWh below its previous settlement at time of writing.

If we check the latest half hourly period at the time of writing (10:30 – 11:00), electricity demand is currently 36.42 GW’s in the UK.

Wind turbines are the largest contributor at over 50% of the UK’s total electricity demand.

Specifically, 50.65% (19.47 GW’s) of the UK’s total electricity is being generated from wind turbines currently with gas only contributing 4.10 GW’s (10.67%).

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