Irish wholesale gas prices fall 35pc in August
An ongoing mix of oversupply and weak demand has seen the price of wholesale gas collapse in recent times.
Gas prices in August were down 35pc on the same month last year, a new report from Vayu Energy has shown.
According to the latest Wholesale Energy Market Report gas prices are down 10pc month on month as we are in the lowest period of demand in the year.
The average day-ahead price for gas, the contract for gas delivery tomorrow, is 1.25c/kWh (cents per kilowatt hour) for August so far. This compares to an average price of 1.90c/kWh in August of last year.
Vayu senior energy analyst Gillian Lawler said the abundance of supply will continue to be the main diver for gas prices delivery next month.
“Updated storage figures show European stocks are extremely healthy. In addition, the recent update from Centrica that its Rough storage facility, which houses 70pc of the UK’s storage capacity, will have 20 wells available for withdrawals from November 1 is also good news. This accounts for two thirds of wells at the facility, a significant improvement to earlier expectations of just 4 wells being available to year end."