Friday Energy Update 16/06/23

Unfortunately, there has been increases over the last 7 days in the wholesale market.

Increases are due to extended Norwegian maintenance and low LNG send-out. An extension to planned maintenance at Norway’s Nyhamna processing facility likely acted prime source of support.

According to data from offshore operator Gassco, 79.8mcm/day has been offline since 19th May, the outage was originally expected to end 21st June, however technical problems have delayed the start-up by additional three weeks (15th July). Further support potentially came from a bleak LNG outlook, data from National gas transmission shows send-out has decreased by a hefty 38% when compared to the same day last week. Furthermore, currently there is just one laden vessel berthed at the Port of Milford Haven’s South Hook No1 terminal, with the port posting that no further LNG shipments are expected to arrive over the next seven days. Additional bullishness likely came due to a rallying carbon market, ICE data shows the December-23 benchmark contract has risen for a fifth consecutive session and rose to its highest point since 20th April.

With the oil production cuts looming in July, it might be worthwhile considering locking in new rates as soon as you can if your contracts are due for renewal.

Get in touch

For those with contract ends dates within the next 12 months now could be the time to secure rates whilst the market is in this position and to avoid any Autumn/Winter volatility.

We are currently saving our clients, on average, over 60% on their utility bills. Please feel free to contact our Business Efficiency Team, on 01273 424904. So, we can provide you with recommendations around reducing your energy costs.

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