This blog will focus on topics to be covered in the upcoming Argus European Natural Gas webinar for the first quarter of 2018. Invitations to the webinar will be sent to subscribers soon.
The rapid rise in UK NBP and Dutch TTF natural gas prompt prices during the cold snap has grabbed headlines. But the lack of supply flexibility this week has taken all winter to create.
The Dutch system operator bought balancing gas for €545/MWh, while NBP within-day prices hit £1.94p/th, up from yesterday’s day-ahead market close of 91.15p/th.
This blog on storage addresses the tight seasonal spreads analysed in the Argus European Natural Gas quarterly webinar in January. The live webinars — including recording and brief document — are usually only available to subscribers, but to complement this blog the January one is available here.
One of the zombie ideas that refuses to die in the energy world is that the global LNG market is “oversupplied”.
The spike in UK gas prices yesterday demonstrated that the NBP remains a well-functioning hub, while Italy’s PSV struggled to deal with a halt to Tag pipeline flows following an explosion at Austria’s Baumgarten compressor station.
UK wholesale gas prices did what the market is designed to achieve, which is to ensure there are no interruptions to supply.
European near-curve prices rallied in November despite early indications that there will be more gas left in storage at the end of the winter than in most recent years.
Cold weather in November, and forecasts for it to extend into December, supported TTF contracts for delivery over the remainder of the winter. And the firmer gas prices are especially evident when comparing gas with coal — its main competition — as the TTF day-ahead market has climbed to levels that would make even the highest efficiency plants uncompetitive.