UK short-term gas prices this morning witnessed their biggest spike yet of the winter
With Day-ahead hitting 120 p/th and Within-day 150 p/th – its highest level since 2006 – as imports through the main interconnector with Europe (the Zeebrugge-Bacton IUK pipe) were shut off due to a pump failure. Gas imports through the Interconnector were at record levels and reportedly supplying 25% of the UK’s gas needs at the time of the shutdown. Short-term UK power prices too have been propelled higher as a result – prices for the weekend hitting £93/MWh and Day-ahead (Monday) values reaching £82/MWh – their highest level since December 2010.
Prices further forward, on both gas and power markets, have also been pushed up, although only marginally from Winter ’13 onwards . April Annual ’13 gas is currently discussed around 69.7 p/th, up around 0.3 p/th on yesterday, while April Annual ’13 power is discussed around £53.3/MWh, up around £0.25/MWh. It is unclear at this stage how long it will take for the pump to be fixed and for flows to resume, while some short-term prices have now eased off from their earlier highs.
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