The Sept 2021 Gas price rose 2.6% to 110.89p/therm last week, amid uncertainty around Russian imports, rising global LNG prices and forecasts for lower wind output.

Uncertainty around lower Russian imports to north-west Europe via the Mallnow and Nord Stream pipelines is creating considerable supply risk impacting all the European hubs, following a fire at Novy Urengoy that has severely disrupted flows.

The Oct 2021 12 Month Gas price increased 6.0% to 93.31p/therm as winter supplier risks continue causing global LNG prices to steadily climb. Global gas prices have surged higher this summer on the combination of high Asian demand and untenably low European storage inventories.

European gas storages have only filled to 61% of maximum capacity, compared to 89% at the same point in time last year. This continues to be a major supply risk ahead of the colder winter period.

The Oct 2021 12 Month Power price rose 5.0% to £95.08/MWh, tracking gas prices higher with gains in coal providing further support.

Prices for both gas and power continue to be supported by high levels of tender activity in the run up to the 1 Oct renewal date.

The months of July, Aug and Sept are the busiest in the industry, meaning any clients who haven’t yet secured their new contracts will all be asking suppliers for prices at the same time, supporting high prices.