UK Day-ahead gas hits £1/therm on outages and cold - highest level in almost 5 years

Wednesday 28th February 2018

UK Day-ahead gas prices surged to £1/MWh Wednesday morning ─ their highest level since March 2013, as the freezing weather pushed demand to as much as 30% above seasonal norms at the same time as supply was squeezed by an unplanned outage at Norway’s biggest gas processing plant, Kollnes, and  imports through the main interconnector with Europe dropped to zero, as the cold spell intensified across the continent, leading to a widespread scramble for gas. At the time of writing Within-day gas was trading at 140 p/th. Month-ahead prices were also pulled higher as a result, although forward periods beyond this were only tugged slightly higher.  

Day-ahead UK power meanwhile was trading around £80/MWh, its highest value since November 2016, when prices roared to more than twice this level at the peak of the French nuclear crisis.