FX.co ★ UK Gas Holds Narrow Range

In the latter half of September, the futures for UK natural gas dipped below 80 pence per therm, maintaining a tight trading range since early September and remaining close to their lowest levels in a year. This trend aligns with Dutch benchmark prices, largely due to abundant supply and robust output from alternative energy sources. As Europe prepares for winter, storage facilities are over 81% filled, reducing the UK's exposure to intense competition for LNG purchases. Supply remains steady, bolstered by high production levels and increased LNG export capacity from the US, alongside a rise in gas flows from Norway after the completion of certain planned maintenance activities. Looking ahead, Snam has announced a $1 billion project to construct a natural gas storage facility off the British coast.