UK Natural Gas Futures Rise to Over 2-Week High

UK natural gas futures climbed above 83 pence per therm, the highest in over two weeks, following similar gains in European markets amid forecasts of warmer-than-average weather.

The UK has already experienced a hot start to summer, with temperatures expected to reach 32°C in London by Friday, increasing energy demand.

Norwegian gas flows have stabilized, with minimal maintenance disruptions expected in July, supporting supply.

In corporate news, Centrica signed a landmark £20 billion deal with Norway’s Equinor to supply 5 bcm of natural gas annually to the UK through 2035.

The agreement bolsters UK energy security, as imports met nearly two-thirds of UK demand in 2024, with Norway providing over half.

Centrica CEO Chris O’Shea called it an investment in the UK’s future.

Equinor, despite shelving blue hydrogen plans in Norway, remains committed to hydrogen projects across Europe, including the UK.