Both gas and power opened up on Tuesday (14th June) based on news that the Russian gas pipeline Nordstream 1 had dropped transportation levels by approximately one third today due to a compressor fault issue found during maintenance.
Prices had initially started to settle but then in the late afternoon, the news broke that the Freeport LNG terminal in the US would not be back on line within the three weeks originally estimated, following a fire last week that had forced its temporary closure. It is now expected that the facility will be closed for up to 3 months and it perhaps may not be fully operational until the end of this year. Bullish trading ensued and we’ve seen prompt prices rise for gas by over 20% at one stage with power prices increasing by 5%. Further out, curve prices also increased but by much smaller levels at approximately 1.5%.
Wholesale prompt prices for gas and power both increased on Monday, 13th June.
July 22 wholesale gas prices dropped by 5% to close at 153.71 per therm.
Wholesale power prices fell by 2.2%, and closed at £162.62 per MWh.
In other energy related news:
- Reports suggest that the amount of Russian energy imports from the European Union in the first 100 days following the invasion of Ukraine by Russia have remained strong. The EU helped to fill Russian coffers with an estimated 46 billion Euros for crude oil, 24 billion Euros for pipeline gas , 13 billion Euros for other oil products, 5.1 billion Euros for LNG and 4.8 billion Euros for coal. In total, this equates to just under £50 billion, which controversially is 10 times more than the EU has provided in aid to Ukraine since the start of the conflict.
- Hackers have infiltrated the IT systems of two German energy suppliers forcing the closure of their websites. This follows a spate of cyber attacks on other German energy facilities in the previous months, which has been causing a growing amount of concern across the German energy industry.
Stay Informed! Are your utilities up-to-date?
We are here to advise you on every aspect of usage, procurement and net zero reporting for electricity and gas! Get in touch for a free no-obligation quotation.