Supply issues force gas prices up

Gas prices rebounded on Wednesday amid Norwegian maintenance and low LNG supply.

The biggest moves were observed at the front-end with the May 24 front-month contract going up by 0.06p/kWh when compared to its previous close.

Norwegian supply curtailments likely served as a key source of pressure, according to data from offshore operator Gassco flows via the Langeled pipeline fell by more than 42% when compared to the previous gas-day. This sudden drop in supply could be related to the shutdown of the Hammerfest/Melkøya LNG plant that coincided with 35.8mcm of planned maintenance at the Nyhamna gas processing facility.

Dwindling LNG supply also likely amplified the issue, data from National Gas shows that send-out averaged just circa 10mcm throughout the session which is a staggering 90% lower than the circa 113mcm that LNG contributed on the same date last year, due in part to higher spot prices in Asia diverting many vessels away from Europe.

Prices have held firm so far this morning, with most being offered very much in line with their previous settlements at time of writing.

The UK is currently consuming 35.84 GW’s of electricity (10:30 – 11:00).

The wind has dropped a little today. Wind turbines are currently only generating 7.09 GW’s (19.15%) of the UK’s total electricity with gas for power up at 12.18 GW’s (32.92%) of the total.

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