PPA and Green Gas Markets recovered some of Friday afternoon’s losses in early trade today.
- Weather models are now suggesting more cold as new supply risks on the gas side continue to show a tightening in the global market.
- Managing expectations on the power side: PPAs continue to lag gas markets higher (but will be supported).
- Temperatures across northern Europe are expected to drop after a mild start to the week.
- Heating demand has helped draw down European gas storage inventories further this week:
- Nov 2024 88% Full
- Nov 2022 98% Full
- An unplanned outage at the Pluto LNG facility in Australia has constrained export volumes.
Regarding the Russian transit issue we discussed previously, the US is proposing sanctions on Gazprombank (which handles the gas payments) that could result in earlier termination of the agreement.
NSR PPA and Green Gas Markets Update: 27/11
- Green Gas down 3.2%
- PPAs down 2.75%
