ICIS Energy reports that Wednesday’s NBP price spikes on the back of issues with the Forties Pipeline System (FPS) revealed anxiety about the possibility of a supply shock in Britain.
So far in 2018, Britain has imported around 14% more gas from Norway, Belgium and the Netherlands combined, year on year. Flows from Belgium through the Interconnector pipeline are up 69% year on year in the same time-frame.
Inspired Energy Director of Energy Intensive Clients, Nick Campbell said that increased volatility is due to the loss of Rough, meaning quick supply is not available. In this light, any infrastructure damage, becomes more significant.
Commenting on the NBP article, published by ICIS Energy, Nick added “Any sniff of a disruption will cause hair trigger reactions as it is better to buy the rumour, sell the fact,”.
Wednesday’s REMIT notice from National Grid and TOTAL reduced supply by only around 11mcm, but it was the source of the curtailment which caused the price shock.
Source: ICIS Energy