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Energy Prices (mid July 2014)

Mid July 2014

Electricity:   Oil prices may rebound following the recent reopening of ports in Libya as there is such insecurity in the country it is difficult to trust that the stability in exports can be sustained.

Construction of a 665 MW windfarm off the coast of Brighton has been approved- the first on the south coast. The project is expected to come on line in phases between 2015 and 2018.

Gas: the forecast for winter 2014 is a cold one, so it is likely to drive prices higher, especially if Ukraine needs to import gas form the EU instead of Russia.

Reserves at Israel’s Leviathan field have been re-estimated to 620 billion cubic meters, the site is set to become a major new source of gas for Europe. Production is expected to come online in 2017.

Storage sites in the UK are almost 88% full and overall EU sites are 75% full, this is likely to limit demands for exports over the rest of the summer.

Summary position:

Oil $106.98/barrel

Coal $77.83/MT

EUA 14 €5.96/TCO2

Gas 54.90/th Oct 14

Gas 57.75/th Apr 15

Electricity £47.3/MWh Oct 14

Electricity £50.93/MWh Apr 15