
04 October 2006
Gas prices prove elusive as they go negative the first time for ten years.
Every suppliers nightmare, you have to pay someone to take your product away. At one point within-day gas traded at -5p/therm. The implication of this is that storage is completely full, take or pay contracts are kicking and that some traders would prefer to pay someone to take their gas at 5p/therm rather than have to take the gas (which they physically can't accept delivery of) and then pay a default fixed priced probably in the region of 30-40p/therm.
One must remember that this is a short term withinday issue and that one would not wish to trade large quantities of gas along the curve on the back of it. But it does show that the market is significantly oversupplied and that if demand were to increase the system could cope with it remarkably well.
Natural Gas the one to watch
 
08 March 2010
The power curve ended the week down feeling the pressure from the fuel curves as well as healthy supply situation. Looking forward, the gas market is the one to watch as it continues to dominant the fuel mix accounting for 50% of generating plant.  
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Gas Balancing Alert Issued
 
05 January 2010
National Grid issues a rarely used Gas Balancing Alert following both supply and demand pressures. With severe weather warnings in place and freezing temperatures set to continue, will this be the last of the GBAs?  
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Where's the certainty?
 
23 December 2009
There was a time when you could quite comfortably forecast the running order of generation plant in the UK - but 2009 has seen a dramatic turn in the stack!  
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Gas Balancing Alert Issued
 
05 January 2010
National Grid issues a rarely used Gas Balancing Alert following both supply and demand pressures. With severe weather warnings in place and freezing temperatures set to continue, will this be the last of the GBAs?  
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EdF enters the world of competition..
 
05 November 2009
EdF has capitalised on competitive energy markets across Europe, not least in the UK, while at the same time enjoying a dominant, competition free, environment at home in France. It looks as though the EC has finally caught up with them...  
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What's Happening in the Back-End?
 
19 June 2009
The back end of the curve is extremely difficult to trade. Those dipping their toe in tend to be Producers (with excessive length adjusting their risk positions) and Banks looking for some exposure. At the same time Retailers tend to be short-termist.  
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UK Gas price highest in World.
 
11 September 2009
The UK gas price in Q409 is attracting significant volumes of LNG gas to the UK but there is real doubt as to whether these prices levels will be maintained.  
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