{"id":8149,"date":"2024-07-16T10:43:06","date_gmt":"2024-07-16T10:43:06","guid":{"rendered":"https:\/\/switchinggroup.com\/?p=8149"},"modified":"2024-07-16T11:09:27","modified_gmt":"2024-07-16T11:09:27","slug":"east-asian-heat-raises-european-gas-benchmark","status":"publish","type":"post","link":"https:\/\/switchinggroup.com\/?p=8149","title":{"rendered":"East Asian Heat Raises European Gas Benchmark"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"8149\" class=\"elementor elementor-8149\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2d84a140 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2d84a140\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5f72152a\" data-id=\"5f72152a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6a29796d elementor-widget elementor-widget-text-editor\" data-id=\"6a29796d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><\/p>\n<p>Last Friday, NBP (National Balancing Point) gas prices saw a small increase despite fuller storage in the UK. Most curve contracts rose, with the Winter 24 front-season gaining 1.5p\/therm (0.05p\/kWh). The increase in East Asian temperatures has most likely had a direct effect on the European energy market.<\/p>\n<p><\/p>\n<h3 class=\"wp-block-heading\">What does this mean?<\/h3>\n<p><\/p>\n<p>The increased demand for LNG (Liquified Natural Gas) is in response to the extreme heatwave seen in East Asia. With temperatures hitting 40\u00b0C, the Japan Meteorology Agency issued heatstroke alerts. As the largest importer of LNG globally in\u00a0<a href=\"https:\/\/www.statista.com\/statistics\/274529\/major-lng-importing-countries\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #ff9900;\">2022<\/span><\/a>, Japan\u2019s increase in gas-fired cooling demand has increased the European TTF (Title Transfer Facility), a price benchmark for natural gas.<\/p>\n<p><\/p>\n<p>The British government denied that Energy Secretary Ed Miliband ordered an immediate North Sea drilling ban. The Department for Energy Security and Net Zero reassured that no official decision regarding new drilling licenses has been made. The government confirmed its policy of stopping new exploration licenses while managing current oil and gas permits until they expire. They aim for a balanced transition into the sector, working with the North Sea.<\/p>\n<p><\/p>\n<p>High storage levels remain in the UK which may have capped high gas prices, especially for near-dated contracts. Supported by strong flows from Norway, Gassco indicated that gas nominations into Britain\u2019s Easington and St Fergus terminals met just under 40% of actual demand. Last year Norwegian exports were constrained by extended maintenance, resulting in a 25% increase from that period.<\/p>\n<p><\/p>\n<h3 class=\"wp-block-heading\">Summary<\/h3>\n<p><\/p>\n<p>Last week, the energy market edged higher as a result of the East Asian heatwave, which increased the use of cooling systems and pressured gas demand. Because gas storage in the UK is particularly high, this could have potentially capped gas prices from being much higher. On Monday, gas prices started with a bearish sentiment, with most contracts offering approximately 1p\/therm (0.03p\/kWh) below their previous settlement.<\/p>\n<p><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0b32e41 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0b32e41\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-29e3327\" data-id=\"29e3327\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-857bf66 elementor-arrows-position-inside elementor-pagination-position-outside elementor-widget elementor-widget-image-carousel\" data-id=\"857bf66\" data-element_type=\"widget\" data-settings=\"{&quot;slides_to_show&quot;:&quot;1&quot;,&quot;navigation&quot;:&quot;both&quot;,&quot;autoplay&quot;:&quot;yes&quot;,&quot;pause_on_hover&quot;:&quot;yes&quot;,&quot;pause_on_interaction&quot;:&quot;yes&quot;,&quot;autoplay_speed&quot;:5000,&quot;infinite&quot;:&quot;yes&quot;,&quot;effect&quot;:&quot;slide&quot;,&quot;speed&quot;:500}\" data-widget_type=\"image-carousel.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-image-carousel-wrapper swiper\" role=\"region\" aria-roledescription=\"carousel\" aria-label=\"Image Carousel\" dir=\"ltr\">\n\t\t\t<div class=\"elementor-image-carousel swiper-wrapper swiper-image-stretch\" aria-live=\"off\">\n\t\t\t\t\t\t\t\t<div class=\"swiper-slide\" role=\"group\" aria-roledescription=\"slide\" aria-label=\"1 of 2\"><figure class=\"swiper-slide-inner\"><img decoding=\"async\" class=\"swiper-slide-image\" src=\"https:\/\/switchinggroup.com\/wp-content\/uploads\/2024\/07\/Screenshot-2024-07-16-111904.png\" alt=\"East Asian heatwave causing closing prices to spike\" \/><\/figure><\/div><div class=\"swiper-slide\" role=\"group\" aria-roledescription=\"slide\" aria-label=\"2 of 2\"><figure class=\"swiper-slide-inner\"><img decoding=\"async\" class=\"swiper-slide-image\" src=\"https:\/\/switchinggroup.com\/wp-content\/uploads\/2024\/07\/Screenshot-2024-07-16-111926.png\" alt=\"East Asian heatwave slightly increasing system demand\" \/><\/figure><\/div>\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"elementor-swiper-button elementor-swiper-button-prev\" role=\"button\" tabindex=\"0\">\n\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"eicon-chevron-left\"><\/i>\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-swiper-button elementor-swiper-button-next\" role=\"button\" tabindex=\"0\">\n\t\t\t\t\t\t<i 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elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"380aa04\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6218c64 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6218c64\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-22ddbcb\" data-id=\"22ddbcb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-867de30 elementor-widget elementor-widget-text-editor\" data-id=\"867de30\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"font-size: 16px; font-style: normal; font-weight: 400; text-align: center;\"><span style=\"font-weight: bold; background-color: var( --e-global-color-astglobalcolor5 ); color: var(--ast-global-color-3);\">Click here to get your free, instant energy quote<\/span><\/p><p style=\"font-size: 16px; font-style: normal; font-weight: 400; text-align: center;\"><span style=\"font-weight: bold;\">\u2193<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-065c9ae elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"065c9ae\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5efb277\" data-id=\"5efb277\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-67d13e6 elementor-align-center e-transform e-transform elementor-widget elementor-widget-button\" data-id=\"67d13e6\" data-element_type=\"widget\" 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data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm elementor-animation-float\" href=\"https:\/\/quotes.switchinggroup.com\/journey\/supply-details\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">instant quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-af933a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"af933a4\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-712f8d9\" data-id=\"712f8d9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fb8dec3 elementor-widget elementor-widget-spacer\" data-id=\"fb8dec3\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-61ae3c2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"61ae3c2\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3439333\" data-id=\"3439333\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a5394e7 elementor-widget elementor-widget-text-editor\" data-id=\"a5394e7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>For more information on gas and energy for businesses, check out these websites:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0467000 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0467000\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-91c3d5c\" data-id=\"91c3d5c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-19499e7 elementor-widget elementor-widget-text-editor\" data-id=\"19499e7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a style=\"background-color: #ffffff; color: #ff6600; font-size: 1rem; font-style: inherit; font-weight: inherit; outline: 0px;\" href=\"https:\/\/www.ofgem.gov.uk\/information-consumers\/energy-advice-businesses\">www.ofgem.gov.uk\/information-consumers\/energy-advice-businesses<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0bbe1fe elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0bbe1fe\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5a4fd89\" data-id=\"5a4fd89\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1047900 elementor-widget elementor-widget-text-editor\" data-id=\"1047900\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/www.yuenergy.co.uk\/news\/\" style=\"background-color: rgb(255, 255, 255); color: rgb(255, 102, 0); font-style: inherit; font-weight: inherit;\">www.yuenergy.co.uk\/news\/<\/a><br><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This week\u2019s market analysis explores the impact of East Asian weather changes on the energy market. Additionally, we delve into how gas storage facilities can establish benchmarks for gas prices.<\/p>\n","protected":false},"author":20,"featured_media":8151,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34],"tags":[],"class_list":["post-8149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wmr"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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