The Sept 2021 Gas price fell 5.5% to 104.76p/therm last week, after gas supplier Gazprom confirmed that a controversial Russian pipeline to Europe, Nord Stream 2, can deliver its first batches of natural gas to Germany in 2021.
More than 99% of the pipeline has been completed, according to its operator. But before carrying the first gas to Germany, the link needs to obtain insurance and certification, a task made difficult by U.S. sanctions that restrict providing these services to the project.
The Oct 2021 12 Month Gas price declined 9.3% to 85.53p/therm as news that Nord Stream 2 would increase supply to Europe by 5.6 bcm will help ease a supply crunch in the European market.
European gas storages have only filled to 63% of maximum capacity, compared to 91% 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 fell 3.3% to £91.94/MWh, tracking gas, oil, carbon and coal prices lower.
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. With only 5 weeks to go, there is very little time for customers to lock out their 2021 supply contracts.