Natural Gas Prices Diverge in June
U.K. and Continental European natural gas price trends diverged in June, with a year-on-year comparison showing U.K. gas down 5% while gas on the Continent was up 5%, according to Platts, the global energy, petrochemicals and metals information provider.
Platts' price assessments show the average cost of day-ahead gas on Continental Europe's most liquid hub, the Dutch TTF, was Eur23.83 per megawatt hour (/MWh) in June this year compared to Eur22.66/MWh in June 2011.
The U.K. day-ahead gas price average in June 2012 was 55.17 pence per therm (pence/therm), down from 58.29 pence/therm in June 2012.
The U.K.-Belgium gas Interconnector, the key link between the U.K. and the Continent, was out for maintenance in June this year, halting gas exports from the U.K., said Alex Froley, Platts European gas managing editor. This could likely account for the divergence in prices seen last month. Normally maintenance happens later in the year.
Meanwhile, wholesale power prices in continental Europe are down 13% year-on-year as a result of weak demand and generation oversupply.
The average cost of day-ahead power in Continental Europe as indicated by Platts Conti Index* was Eur43.15/MWh in June 2012 compared to Eur49.65/MWh in June 2011. A similar trend was observed in the U.K., with the day-ahead monthly average down 17% year-on-year.
|Platts Continental Europe and U.K. Day-Ahead Monthly Averages|
|UK power (GBP/MWh)||42.12||44.46||46||50.22|
|UK gas (pence/therm)||55.17||57.06||59.95||58.29|
NOTES: all figures are monthly averages of day-ahead contracts assessed by Platts.
*Platts Continental Power (CONTI) Index is a demand-weighted baseload average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands. The index reflects prices as determined between buyer and seller in the open market.
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