Green Gas and PPA markets have moved lower again today. – 3rd November 2024
- GFS and ECM weather models now forecast a mild and dry November after recent flooding in Spain.
- Temperatures are forecast to be well above seasonal norms.
- This will reduce pressure on European gas storage inventories.
- The milder weather follows an unusually mild October. Global warming is extending “summer” well into Q4.
- Milder temperatures have reduced heating demand at a time when some of the geopolitical risk premiums have also come out of the market.
- There have also been some suggestions again of a deal to use Azerbaijan as a transit route to keep Russian gas flowing to Europe (bizarre situation!) after the Ukraine transit agreement expires at the end of the year.
- NBP’s front month last trades are at 101p per therm.
- Baseload Power in the UK for December last trades at £85 MWh.
- We see interest in extending price hedges on both PPAs and Green Gas.
If you want to see firm PPA pricing, please give us time, as fixing in the current market is taking slightly longer due to price volatility and moving lower…
Thanks
Jamie
