UPDATE 30TH MAY 2024
- PPA and Green Gas pricing has moved lower since Tuesday and is now range-bound, looking for direction.
- Short-term supply/demand fundamentals indicate a comfortable system outlook, but macro risks are price-supportive.
- We are still monitoring LNG cargo and supply data, which will be a key price driver for both PPAs and Green Gas markets as summer progresses.
- Heating demand in South American markets has jumped over the last two weeks, with Argentinian buyers in the market for additional spot LNG cargos.
- Energia Argentina recently launched a supply tender for the incoming Southern Hemisphere winter.
- In Europe and the US, the focus is on cooling demand and any potential “heat wave” that would draw down storage inventories ahead of our winter.
Another bullish demand factor is the widely documented severe heat in Southeast Asia and North Africa.
If you have any questions, please email or call the desk.
Thanks
Fran Reay
Market Analyst at New Stream
PPA Update 28th May
- PPA and Green Gas markets are looking for direction as we start the week after the bank holiday weekend.
- UK and US markets were closed yesterday, but European gas and power traded up slightly in limited liquidity.
- Geopolitical tensions increased with the death of an Egyptian soldier in Rafah.
- Gas fundamentals remain balanced with improvements in Norwegian pipeline supply, but concerns around the LNG outlook remain.
- Power markets are also struggling to hold gains.
- Renewable performance is up on wind and solar.
For generators looking to take advantage of recent PPA market strength with a view to 2025 extensions, please let us know as soon as possible, and we can benchmark some pricing for you.
Thanks
Jamie Banks
PPA Manager at New Stream
