At Energy Management Ltd, we believe that expert guidance and support are more important than ever before in the ever-changing energy markets.
Our years of industry experience allied to the best market-tracking software and analysis tools enable us to provide invaluable insight into the drivers that impact oil, gas and electricity prices.
Understanding those factors is key to implementing a well-informed energy procurement strategy that is individually tailored to your own specific business needs.
After a big spike in the early part of March, gas and electricity prices have remained fairly stable over the last two months but an upward trend can easily reoccur due to largely uncontrollable factors.
LNG fleet grounded
As we reach the middle part of the year, the drivers behind energy price rises remain as variable and unpredictable as ever.
Only last week, damage to the Freeport LNG Terminal in the United States caused by an explosion and subsequent fire in the plant shook the European markets as it accounts for 20 per cent of LNG gas processing.
Growing dependency on LNG deliveries from the US means the longer this goes on, the twitchier the markets will become.
The latest estimates suggest a three-week downtime period. Normally in that time, 13-15 LNG vessels would deliver LNG supplies, so not an insignificant amount, and it goes without saying, the markets will be keeping a keen eye on that situation in the weeks ahead.
Storage target under lock and key
Meanwhile, the EU has passed the 50 per cent gas storage landmark ahead of forecast. At that replenishment rate, the 80 per cent target rate will be met well ahead of the November deadline, possibly September.
On that note, a formal application has been submitted by Centrica to reopen the Rough Storage facility in the North Sea five years after its closure. A bearish or bullish response will be triggered depending on the outcome.
The COVID-19 lockdown situation in China, one of the world’s biggest energy-consuming countries, is always a keen area of focus as prices rise and retract depending on whether restrictions are being rolled back or reimposed.
Also, the gas maintenance season is now into its stride but activity appears to be at the lower end of the scale at present.
Read more on how our Energy Procurement expertise enable us to get the best energy deal for your business.