UK Natural Gas NBP Spot Price
Gas prices in the UK are commonly referenced to the UK National Balancing Point (NBP) price. Trends for the UK NBP are considered by ERCE’s oil and gas commercial modelling in their routine workflow.
The Gas Spot Price is the current price in a marketplace at which natural gas can be traded for immediate delivery. In the UK, the Gas Spot Price is commonly referenced to the UK National Balancing Point (NBP). In this model, gas anywhere in the national transmission system within the UK counts as NBP gas which allows simplification of trading as buyers and sellers are united in the same marketplace.
The UK NBP gas market was established in the late 1990’s, making it the most long-lived gas market in Europe. The UK NBP price is extensively used as an indicator of price for Europe’s wholesale gas market alongside the younger but quickly expanding continental European trading centres such as the Dutch TTF. The NBP gas market permits trading from a wide range of participants; financial traders, industrial users, utilities companies, power generators, LNG suppliers and oil and gas producers.
The UK gas market is supplied from a wide range of sources including the liquefied natural gas tankers, imports piped from Norway and continental Europe, storage and of course the UK’s own natural gas production.