Supply-demand fundamentals remained tight amid ongoing maintenance work, which is set to continue for most of June.
The gas system was frequently undersupplied despite efforts to increase storage withdrawals and cut Interconnector exports. Flows from Barrow and Bacton returned but all gas fields into the St Fergus NSMP terminal will remain offline until 23 June.
Unplanned issues at SEGAL and the start of a full shutdown at Teesside also reduced UK production. The Interconnector is offline for two weeks from Wednesday, which will halt export demand but LNG imports remain down year-on-year, reducing flexibility in the gas system.
Very low wind output has left gas for power consumption averaging over 50mcm today. This further supported gas demand by accounting for over a third of total gas usage.
Power prices also fluctuated across the curve last week echoing volatility seen across the gas, oil, coal and carbon markets in the last week. Having dropped back from the multi-year highs reached in May, contracts have sought to stabilise which has increased volatility. Prices are still markedly higher year-on-year following the substantial gains seen during March, April and May. Fluctuations in the wider gas, coal and carbon market have influenced the cost of generation.
As maintenance work disrupts gas production pushing up Day-ahead gas prices, prompt power prices were also supported around £55/MWh. Very low wind output, averaging under 1GW, left gas power plants accounting for 50-60% of electricity. Use of more expensive fuel sources to offset the low renewable output has supported short-term prices.