Wholesale gas prices react to high storage levels

Gas prices eased further at the NBP on Monday as steady supplies and high storage levels repelled transatlantic LNG concerns.

The biggest moves were observed across the prompt and near-curve with the August 24 front month contract plummeting by circa 2.2p/therm (0.075p/kWh) when compared to its previous close, thanks in part to uninterrupted Norwegian imports. According to data from Norway’s Gassco, flow nominations into Great Britain’s Easington and St Fergus entry points totaled 76mcm across Monday’s gas-day (around 42% of total GB gas demand).

This not only represented a 7% daily increase in Norwegian supply, but it also drove up Easington nominations to the highest level recorded since 23rd April.

On the storage front, continental stocks are holding firm, with the recent spate of cooler weather doing little to slow the pace of injections into storage facilities. The latest data from Gas Infrastructure Europe shows that aggregated storage levels are at 79.14%, this is on a par with the same date last year [79.06%] and well above the 10 year-moving average [65.11%].

Meanwhile, over in the US operators are currently assessing the extent of damage to infrastructure caused by the landfall of Hurricane Beryl on Monday morning (BST). Several LNG export facilities closed in anticipation of the Category 2 storm and possible supply disruption likely acted as a price floor at European gas-hubs yesterday, even if it did not manage to dominate market sentiment.

In other news, newly appointed UK Chancellor of the Exchequer Rachel Reeves gave a speech at the Treasury yesterday outlining plans to lift the ban on onshore wind power as part of a wider overhaul of the countries planning permission and infrastructure development rules.

This morning natural gas prices have so far continued their downward trajectory, with the Winter 24 front-season contract currently being offered circa 1.3p/therm (0.044p/kWh) below its previous settlement, at time of writing

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