Market Update 21st August

Green Gas prices dropped by around 5% yesterday on the back of a key European storage inventory milestone.

NBP gas pricing fluctuates

Pricing on Green Gas and PPA markets has pulled back a touch over the last couple of trading sessions.

• Price action has seen PPA and underlying NBP gas fluctuate between small gains and losses as the market weighed geopolitical risks against healthy gas storage inventories. 
• Front-end Sep NBP trades around 95p after some of last week’s gains were recouped in the Friday afternoon session.
• With just five or six weeks before we see heating demand on the system, European storage is nearly 90% full.
• Against a five-year average, this would be more than two months early.
• That is a pretty comfortable position. However, war risks in Ukraine and the Middle East and some supply glitches on the gas side have tightened things up for now.

Pricing Fix opportunities for PPA generators

We still consider this a fixing opportunity for PPA generators into the calendar year 2025 and favour some layering in of hedges into the forward summers for Green Gas producers.

If you want to see some pricing or discuss strategy, please call the desk or email us.

Jamie Banks
PPA Manager at New Stream