Gas prices propped up despite mini-heatwave

Brits may have lapped up the weekend’s mini-heatwave but the warmth has not seen gas prices fall because of repair work at Norwegian gas works, according to the daily market […]

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By Vicky Ellis

Brits may have lapped up the weekend’s mini-heatwave but the warmth has not seen gas prices fall because of repair work at Norwegian gas works, according to the daily market report.

Ben Spry, Optimisation Desk Manager at npower said: “We’re all in all a fairly bullish picture for gas this morning.

“That’s despite really low demand environment we’re experiencing with warmer temperatures over the weekend likely to continue. We are seeing those prices supported by that [Norwegian] maintenance.”

He said the ongoing scheduled maintenance in Norway is “really starting to ramp up this week so we could see around about 100mcm (million cubic meters) worth of gas come offline from Norway this week”.

Mr Spry added: “There’s a little bit of support in the gas markets not only in the UK but across Europe as a result of that.”

The UK is also getting no gas flows through the BBL pipeline from the Netherlands today, he said.

On top of this, the country is exporting a lot of gas to the interconnector with Europe while there are “pretty robust” injections onto the gas storage sites.

Propped up gas prices are feeding into short-term power prices, he added.