Prompt prices opened a little down compared to Friday’s (22nd July 2022) close but as the morning has progressed, prices have started to creep back up and we’re currently at the same level as the market closed last week. We expect to have a strong turnout from wind generated power today and tomorrow, although this is expected to drop off as we approach mid week. Coal is also starting to make a more regular appearance in the generation mix. In the past year, we’ve generated 1.7% of our electricity from coal but as an example of the increase, on Sunday, 24th July, coal made up 4% of the generation mix.
August 22 wholesale power prices increased by 0.9% to close at £286.63 per MWh.
August 22 wholesale gas prices increased by 5.4% to close at £312.63.13 pence per therm.
In other energy related news:
The German regulator has confirmed that Germany is back on track to hit its first gas storage target in time for Winter. As of 23rd July, they are at 65.91% and so they have just over 5 weeks to inject the additional 9.08% they need to hit the first target of 75% by 1st September. However, they went on to say that the other target of hitting 95% gas storage by 1st Nov is very unlikely to be met, even by taking the measures that we have reported recently of reducing consumption to streetlights and to ban customers from heating private swimming pools this Winter.
The EU is turning more to African countries to help replace the downturn in Russian gas volumes we have seen this year. Following recent discussions with Algeria, EU representatives are now speaking to Nigeria to see if it will be possible to increase the 14% of EU volumes that currently come from Nigeria. However, Nigeria is struggling to increase current levels due to ongoing challenges with theft and vandalism to one of their main gas delivery points, Bonny Island As a result of these problems, the terminal is only operating at 60% capacity. The owner of the terminal, Nigeria LNG Limited, has said that if they can increase output at the facility to 80%, these additional volumes can be sent across to the EU.
The UK’s National Grid has asked for permission to pump additional gas volumes through one of
the interconnectors that flows gas back and forth to the continent. The BBL gas pipeline runs from
Norfolk to Balgzand in Holland and has been exporting record volumes this year, but National Grid
is asking for the current maximum levels to be increased by 30%. The UK has been receiving more
LNG deliveries than the majority of European countries because we have more capacity to unload
the LNG deliveries. However, because our storage facilities are extremely limited, most of the LNG
deliveries are then exported through interconnectors to the continent.
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