16 October 2024

PPA and GPA Pricing Update October 15th 2024

After a bit of a rebound in PPA and Green Gas Pricing yesterday we open today lower.

NBP and TTF gas contracts followed the broader commodity complex lower on reports that “Israel won’t target Iranian Crude”.
Brent crude oil is down below $75.
WTI down at $71.
NBP Gas is lower at 98.25p per therm.
Base load UK power down (Nov) at £87 MWh.

Please let Fran or me know if you have any questions or would like to benchmark any PPA pricing.

NBP gas is again the supporting price driver.
LNG import data shows demand is at its highest since April. The data also indicates that several LNG cargos without “destination clauses” in their contracts have diverted from Europe to Asia.
On the demand side, some weather models suggest a potentially cold start to November, which could also be good news for our Green Gas generators.
“Price aspiration check”…European gas storage still stands at a healthy 95%. This is significantly above the long-term seasonal average but slightly below this time last year. Industrial demand is still dismal, and interconnector power flows to the UK show how much surplus electricity there is in Europe.
On the flip side…Geopolitical tensions are supporting pricing with movements higher in the broader commodity complex. Oil trades higher after slumping more than 4% yesterday.

If you have any questions, please call the desk.