05 June 2024

PPA and GPA Pricing Update June 4th 2024

  • Yesterday, an outage at Chevron’s Gorgon Australian LNG facility compounded gas supply issues closer to home. 
  • Unplanned outages at the Norwegian Nyhamna gas processing plant and the Easingtion import terminal affected UK pipeline supply.
  • NBP gas markets moved higher on the back of this news, with spot prices up over 10% in early trade.
  • Green Gas and PPA markets moved up in relation to these underlying markets. 
  • This morning, Gas traded slightly lower, down around 1%.
  • The gas market remains very sensitive to supply issues with reduced flexibility/ swing post-Ukraine.
  • European gas contracts have rallied 18% over the last three months, even though storage levels are 68% full.
  • LNG supply data showed reduced European supply as Asian demand pulled away cargos. Weather in Asia and South America drives competition and global demand for LNG.
  • Yesterday’s  Australian LNG issues added to bullish market news. The Gorgon plant only returned from planned maintenance on Friday.

We will keep an eye on the market fundamentals and update accordingly. 

If you would like to benchmark any PPA pricing in light of price increases, please let Fran or me know.


PPA Manager

Jamie Banks
PPA Manager at New Stream