NSR PPA and Green Gas Markets Update:

• Front-month gas is closing up 5.5%
• Short-term PPAs are up 4%

If you would like to discuss further, please call the desk.

Thanks

 

 

 

Pricing Update 9th October

PPA and Green Gas pricing move down from recent highs.

• Gas is down a further 1.25%.
• PPAs trade down 1%.

These moves down follow some profit-taking from speculative players who went long into last week’s weather forecasts and recent Ukrainian headlines around winter gas requirements.

Underlying market fundamentals continue to suggest a well-supplied gas and power complex (European-wide) as we head into “heating season”.

NSR maintain our neutral to cautiously bearish view on PPA and Green Gas based on this.

• European gas storage is at 85%.
• LNG data shows a robust cargo supply.
• UK LDZ demand data is low relative the 5-year average.

Looking quickly at the Carbon markets, which were in bullish mood again yesterday. Speculative money and proprietary trading desks continue to build net long positions across the futures exchanges.

• EUA Carbon trades around €78.50.

A specific comment on LES / P2P matching for renewable PPA generators: we are continuing to analyse the matched % data, which is obviously key to delivering income. If you would like to discuss this in relation to your own asset, please let us know.

For any benchmark pricing for PPAs or Green Gas please call the desk.

Thanks

Jamie

 

 

Pricing Update 10th October

• PPA and Green Gas contracts trade lower for a third consecutive day.
• Pricing now back down to short term historic range after brief pop up.
• We will continue to monitor but it is disappointing for us and our generator clients that we have failed to break out of price range.