UK gas market

Gas vs coal switching in Europe: key markets | 30 May, 2016

The displacement of coal plant by gas plant is one of the key current focus issues in the European energy industry.  A sharp decline in coal prices f ...

US exports and the trans-Atlantic cost question | 16 May, 2016

The costs of moving LNG from the US to Europe was one of the key focus points at last week’s Flame conference.  A number of divergent views were pr ...

What does Henry Hub convergence mean? | 09 May, 2016

Prices at the UK NBP and US Henry Hub converged completely during the last global supply glut in 2009-10. This was a simple consequence of global over ...

Anatomy of a spring short squeeze | 02 May, 2016

Last week saw some extreme swings in European gas hub prices. The combination of an early spring cold snap and North Sea supply outages caused the NBP ...

European gas market: current supply & demand balance | 25 Apr, 2016

The next two years are set to be an important period of transition for the European gas market. LNG imports are increasing as Europe adapts to its ro ...

European LNG imports on the rise | 18 Apr, 2016

The post-Fukushima Asian LNG price premium saw European LNG imports fall by more than 50% across the 2011 to 14 period. In 2011, the year of the Fukus ...

Summer gas price pressure & the storage overhang | 04 Apr, 2016

Gas storage facilities have traditionally been the seasonal balancing force in the European gas market.  Across the EU-28 countries there is around 9 ...

A revival in contracting of flexible assets | 21 Mar, 2016

Long term contracts are a cornerstone of the energy industry. They play a key role in underpinning the capital expenditure required to develop assets. ...

Rising CCGT load factors and gas volatility | 07 Mar, 2016

The sharp decline in gas hub prices in 2016 is starting to reshape the landscape for flexible supply infrastructure in European gas and power markets. ...

European gas hub dynamics in 2016 | 15 Feb, 2016

The global gas market fell into a supply glut in 2009-10. The financial crisis, new LNG projects and an explosion of US shale gas production conspired ...

An analysis of European hub price correlation | 25 Jan, 2016

Trading in the European gas market has developed around a two tier structure of trading hubs.  Forward liquidity is focused at the UK NBP and Dutch ...

US exports are now a reality | 11 Jan, 2016

By all reports commissioning of Cheniere’s Sabine Pass terminal has been progressing smoothly and will export its first cargo in the next few weeks. ...

Hub pricing in a converging global gas market | 07 Dec, 2015

There has been a pronounced downward revision of future price expectations across the global gas market as 2015 has evolved. This has been reinforced ...

Russia’s strategic response to an oversupplied gas market | 23 Nov, 2015

The oil market is currently focused on the Saudi dominated OPEC’s strategic reaction to lower prices. There is no ‘gas OPEC’ per se; but there a ...

Implied vs historical gas price volatility | 16 Nov, 2015

European gas hub markets are maturing. This can be seen via the increase in range and liquidity of traded products. Growth in trading activity is focu ...

Global gas price evolution: 5 key drivers | 26 Oct, 2015

The global gas market has been turned on its head over the last 18 months. In Q1 last year, Asian spot LNG prices were breaking records with the Platt ...

Gas flex case study: the impact of losing Rough storage | 28 Sep, 2015

Investment in gas supply flexibility is supported by two key market price signals. Summer/winter price spreads drive investment in seasonal flexibilit ...

Structural transition in gas prices | 14 Sep, 2015

A sharp slump in spot gas prices last summer marked the start of a new phase of global gas pricing.  This summer the gas market has been relatively q ...

The next leg down in commodity prices | 31 Aug, 2015

It has not been a peaceful summer in global commodity markets. After a six month period of consolidation, July saw a renewed broad based decline in co ...

Gas volatility & investment in deliverability | 20 Jul, 2015

The article below is our last before the summer break.  We will be back with more in late August. There are two key structural trends in play that ...

European gas demand, LNG flow & hub prices | 13 Jul, 2015

Last week we explored the impact of weaker Chinese LNG demand on European hub prices. We set out a scenario that illustrated the impact of European hu ...

European hub prices and Chinese gas demand | 06 Jul, 2015

One of our themes in 2015 has been the increasing importance of the LNG market as a driver of European hub prices. To date we have focused more on the ...

Shipping cost impact on LNG price spreads | 22 Jun, 2015

The LNG market is adjusting to the new reality of regional price convergence.  Soft Asian demand, new liquefaction capacity and lower oil-indexed con ...

Collapse in LNG charter rates continues | 01 Jun, 2015

Oversupply in the LNG market is having a knock on impact on the LNG carrier market. LNG vessel charter rates have suffered another down leg in 2015, w ...

Gas plant competiveness is increasing | 04 May, 2015

Over the last five years, European coal plants have developed a substantial variable cost advantage over gas plants. This has been driven by relative ...