On Monday, NBP gas prices surged, buoyed by persistently strong demand despite stable liquefied natural gas (LNG) imports. The January 2025 front-month contract experienced a moderate increase, gaining around 2p/therm (0.07p/kWh) compared to its previous close. This upward trend is due to expectations of continued high demand well into December.
What does this mean?
Forecasts from a 14-day model predict that the bullish demand outlook will continue until at least December 16th. The upcoming weekend’s cooler temperatures will likely increase this trend further.
Adding to the bullish momentum is unplanned maintenance at the Barrow (North Terminal). Data from National Gas indicates the terminal has been offline since November 26 due to technical issues, with a resolution not expected until December 15. This outage has slightly hindered domestic gas production.
Despite these upward pressures, strong LNG supplies have capped price increases. Shipping data reveals that up to 11 LNG vessels are expected to dock at British terminals over the next two weeks.
Summary
As of Tuesday morning, gas prices remain fairly stable, with key contracts trading close to their previous settlement levels. However, much of the trading activity for the day is still pending.
Click here to get your free, instant energy quote
↓
For more information on gas and energy for businesses, check out these websites:
