Energy Market Update - 16 May 2024

The UK energy market remains stable as the NBP Front Month contract is unchanged, with June 2024 trading at 72.50p/therm. Minimal fluctuations and steady LNG supply indicate a balanced market, with EU gas storage levels healthy and forthcoming maintenance at Troll & Kollsnes.

UK gas flows through Langeled are consistent at 60mcm, anticipated to decrease with maintenance starting 21st May. The system is slightly long by 2.4mcm, and demand is below seasonal norms by 60mcm. UK weather remains mild for May, while wind levels are below normal, with a slight increase expected in the last week.

In the broader EU, gas storage is at 65.80%, outperforming 2023 by 2%. TTF and NBP Front Month contracts show minor changes at €29.73 and 72.02p respectively. Russian gas flows and LNG arrivals maintain stability, with no unplanned outages and two LNG vessels expected in the UK soon.

UK power prices are steady, with the Front Month Baseload at £65 and Front Season at £82. Global benchmarks like Brent Oil and Henry Hub show slight increases, hinting at broader market trends influencing the energy sector.