Prices continued to correct downward

European gas prices continued to correct downward yesterday, further reducing their premium over parity prices with coal for power generation. They ignored the additional drop in Russian supply (248 mm cm/day on average yesterday, compared to 266 mm cm/day on Tuesday) due to the complete halt of flows to Mallnow (landing point of the Yamal pipeline) because of maintenance. Norwegian flows increased very slightly to 332 mm cm/day on average, compared to 328 mm cm/day on Tuesday. The drop in Asia JKM prices and in coal and EUA prices (which pulled parity prices with coal for power generation lower) exerted additional downward pressure, particularly for curve prices.

At the close, NBP ICE August 2021 prices dropped by 4.310 p/th day-on-day (-5.16%), to 79.230 p/th. TTF ICE August 2021 prices were down by 177 euro cents (-5.18%) at the close, to €32.338/MWh. On the far curve, TTF Cal 2022 prices were down by 52 euro cents (-2.09%), closing at €24.611/MWh.

With yesterday’s drop, TTF August 2021 prices are now close to parity prices with coal for power generation (currently at €32.100/MWh). Prices could therefore firm up a bit, particularly as they could also benefit from technical supports.

Spot gas prices versus coal switching levels
Share this news :

You might also read :

January 15, 2021

All eyes on China

Brent prompt future prices retreated further at 55.7 $/b as growing concerns about the Chinese health situation raised concerns about Chinese oil demand prospects. President Biden unveiled…
April 28, 2022

Sideways variations of the energy complex

The European power spot prices remained once again overall steady and just below the clean gas costs yesterday amid mostly unchanged fundamentals. The day-ahead prices…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?