By Peter McMullan
20th Jan 2022
We saw a brief dip in prices over the festive period from the incredibly high levels we were seeing in December 2021. This drop was mainly due to unseasonable high temperatures and the announcement of a large amount of LNG (liquified natural gas) shipments from America. The markets have been very volatile since the start of January so it would not have been possible to take advantage of this dip. February 2022 gas contracts rose by 27% between the 3rd and 4th of January; this is down to colder temperatures being forecasted, Russia reversing gas flows from west to east and a number of the LNG shipments being turned around or diverted to more advantageous-priced areas such as China.
The pattern for January is starting to look very similar to that of December, where we saw the large price increases. With the colder weather outlook, no news on the Nord Stream2 pipeline and the UK’s storage facilities at some of the lowest levels we have seen at this time of year, prices look set to potentially increase throughout the month.
CPC’s dedicated energy consultant Dukefield Energy are here to help and are advising CPC members with contracts ending in the first quarter of 2022 to get in contact with them as they can help manage the risk of these very high prices.
If you have any questions at all about your energy procurement, then please get in touch with Dukefield Energy on 03454022461 or [email protected].