Wholesale prices edge higher as it gets colder
Gas prices edged higher at the NBP on Friday amid restricted pipeline flows and below average temperatures.
The October 24 front-month contract posted the biggest moves beyond the prompt after shifting 1.3p/therm (0.04p/kWh) higher, potentially in response to cooler temperatures spurring on heating related demand.
According to data from Norway’s Gassco, only 1.1mcm was nominated to flow into the UK’s St Fergus terminal across Fridays gas-day, falling from 8.4mcm the day prior. With that said, planned maintenance at the larger Easington terminal has concluded as planned as of this morning, bringing just under 75mcm/d of UK import capacity back online.
In other news, the Egyptian General Petroleum Corporations order for 20 LNG cargos between October and December has now been fully allocated, which could tighten the European supply outlook heading into winter.
This morning, the NBP has opened comfortably below Friday’s close, with the Winter 24 front-season contract currently being offered circa 2.5p/therm (0.09p/kWh) below its previous settlement at time of writing.
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Price commentary courtesy of Crown Gas and Power 