Gas prices at the UK's National Balancing Point (NBP) hub in June 2016 rose 13% from the month before, according to data from system operator National Grid. The system average price for June was 34.17 pence/therm ($4.53/mn Btu), rising from 30.21 p/th in May.

 

Factors affecting the market included unplanned Norwegian gas field outages at the Gullfaks and Kvitebjorn fields, as well as concerns that industrial action could impact Ormen Lange production. Closure of the Rough gas storage facility also saw prices rise for the next winter.

 

 

The market remained down on a yearly comparison. Gas prices fell by 22% from an average 43.70 p/th in June 2015. They have been on a downward trend due to lower oil prices and increased global availability of LNG.

 

The system average price is a reference price for daily gas and is used in industry settlement procedures.

 

UK national transmission system gas demand averaged 172mn m³/day in June 2016. This was down 16% from the previous month's 205mn m³/day and down 4% from the previous year's 179 mn m³/day.