According to the latest Reuters report, UK wholesale gas prices have risen in response to a dip in LNG supply from Norway.
The latest price estimates have been reported as follows:
- Within-day contract up 0.05 p at 29.50 p/therm.
- Day-ahead contract up 0.05 p at 29.50 p/therm.
- Weekend contract up 0.75 p at 29.50 p/therm.
Reuters trading sources have confirmed that a drop in send-out from the UK’s LNG terminals (down 28 million m3 to 73 million m3) and reduced Langeled pipeline supply from Norway (down 15 million m3 to 35 million m3) has caused a rise in prices. However, the traders also emphasised that the oversupplied system meant that gains could be limited. Indeed, National Grid data estimates that the UK gas market is currently 7.4 million m3 oversupplied.
Worldwide, prices have also risen in light of the heightened tensions in the Middle East, after the recent US killing of a senior Iranian general in Iraq. Traders have reported significant uncertainty in the oil markets, which is having a knock-on effect on gas markets.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07012020/uk-gas-prices-rise-in-response-to-norwegian-lng-supply-dip/