Professional Energy Purchasing

Market Update

Friday afternoon after 16:00, news broke that the Rough gas storage facility will be unavailable until March or April 2017. The Centrica owned storage site is Britain’s largest, and following a previously announced 42 day unplanned closure at the end of June, further testing has identified uncertainties in other wells.

Typically gas shippers will look to inject volumes during the summer to hedge prices going into the higher demand winter season. Electricity margins normally tighten in winter, and during high demand periods gas-fired generation is used to meet peak delivery. This extended outage may have significant impacts on both price and price stability of the front season on both fuels through to October.

This information was published courtesy of EON.

Energy Efficiency & Procurement Consultants