On 1 March 2018, during ‘Beast from the East’, National Grid issued a gas deficit warning for the first time since the system was introduced in 2012. The warning followed multiple gas supply outages, including South Hook LNG terminal, Kollsnes gas processing plant, and the BBL interconnector. This resulted in reduced supplies from Norway and Holland, leading within-day gas prices to reach a record high of 350.0p/th.
Since the ‘Beast from the East’, gas prices have risen and fallen, with day-ahead prices down to a 16-month low of 45.6p/th on 19 February. In this week’s Chart of the Week we look further at the drivers behind this turn around in prices.