The May 2021 Gas rose 5.1% to 47.21 p/therm last week as colder temperatures drove up demand and on lower LNG send-out. The backlog of ships travelling though the Suez Canal was cleared over the weekend, around 12 days after the massive Ever Given ship grounded. But with European gas storage already running lower than normal for this time of year, delays of LNG deliveries to Europe may take longer to correct.
The May 2021 Power rose 3.5% to £56.22/MWh tracking gas gains, and as wind generation remained below average last week increasing reliance on gas-fired power generation.
The Oct 2021 12 Month Gas price rose by 2.0% last week to 48.33p/therm as the LNG delays resulting from the Suez Canal backlog could be felt as far ahead as next winter. European Gas storage remains close to its lowest level for the past 3 years, around 31% of total capacity. UK Gas storage increased to 49%.
Research firm Energy Aspects said it expects the Nord Stream 2 gas pipeline to contribute to European supply from the start of Q4-21, following an apparent softening of U.S. opposition to the project and the start of work by a second Russian pipelaying vessel.
The Oct 2021 12 Month Power price rose by 2.1% to £57.72/MWh last week tracking gas contracts higher even though European energy demand concerns remain as Covid infection rates rise across the Continent. However, the UK’s own vaccine continues to rollout at the scheduled pace, with more than 30 million people having received at last their first dose.