UK summer market - will NBP trade at a premium or discount to Continental hubs?
In recent years the UK summer (April-September) gas supply position has been comfortable. Much of this excess supply came from flexible cargoes of LNG to UK import terminals and pipeline supplies from Norway. This imbalance between supply and demand led to weak NBP summer prices when compared to continental hubs, allowing substantial flows to the continent during these periods. In 2012 there was a marked reduction in LNG imports to the UK and the wider European market, as increased demand,