02 July 2024

PPA and GPA Pricing Update July 1st 2024 – update July 5th

PPA and GPA Update: July 5th

  • Green Gas and PPA pricing moves up off weekly lows.
  • We remain some way off recent highs after global LNG pricing moved lower at the start of the week.
  • Demand in Asia is seen lower as cooler weather due to monsoon reduces power demand.
  • Indian LNG import data already shows some month-on-month decline. 
  • Asian LNG imports were at a 5-year high in May.
  • US Nymex gas remains soft. 
  • In our domestic market, Norwegian gas flows remain stable, with some planned summer maintenance programmes still running. Renewable power performance remains strong. Demand is weak, and gas storage inventories continue to build.
  • NBP front-month gas last traded this morning at 78.60p per therm.
  • August baseload power in the UK is at £70.5 MWh.

Near-curve Price Volatility was Back in Force Yesterday.

Front-end pricing is up first thing, around 2%, before closing the day down by around 4%.

While the direction of PPA and Green Gas pricing is still uncertain, yesterday’s movements are a crucial reminder of the importance of understanding and navigating the market dynamics to mitigate downside price risk.

It seems moves in US gas markets (relative to European LNG pricing) were a factor. US benchmark Henry Hub pricing closed down 5%. Weather forecasts moved cooler, reducing expected air conditioning demand. US gas storage, like Europe, remains well above the rolling 5-year average.

This morning, Gas at the NBP traded at 78.5p per therm.

Baseload UK is around £72 MWh. 

Please let Fran or me know if you have any questions or want to see any PPA or green gas pricing.

PPA Manager

Jamie Banks
PPA Manager at New Stream