Unplanned gas pipeline maintenance sends prices higher
Gas prices resumed their upward trajectory at the NBP on Monday, supported by unplanned Norwegian maintenance and escalating Middle East tensions.
Near-curve contracts posted modest gains of circa 1.5p/therm (0.05p/kWh) as Norwegian capacity restrictions impacted European gas import volumes.
According to data from offshore operator Gassco, process problems at 3 fields combined to remove 24.1mcm of production output, all while a major outage at the Kårstø processing facility removed 39.4mcm of German import capacity, restricting injections into the country’s large storage reserves.
Contracts further out likely found support from intensifying conflict in the Middle East. The IDF (Israel Defence Forces) continued to strike Hezbollah military targets across southern Lebanon on Monday, though many of the 492 reported to have died yesterday were civilians and some fear the increasing frequency of such strikes could lead to a prolonged conflict or even war in the region.
This morning, gas prices have opened at a slight premium when compared to yesterday’s close, with the Winter 24 front -season contract currently being offered circa 0.75p/therm (0.03p/kWh) above its previous settlement, although many contracts have yet to trade at time of writing.
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Price commentary courtesy of Crown Gas and Power 