Norwegian Gas Pipeline Maintenance Schedule for 2024/25….
Multiple factors influence how energy prices trade. We cannot predict every event, but fortunately there are some we can prepare for, such as the Norwegian gas pipeline maintenance schedule. Summer is peak maintenance season, there will be less gas available from Norway in August and September 2024. The above chart shows when maintenance is planned. The larger the blue “stalactite” the more maintenance and less gas flowing from Norway.
Impact of Maintenance on Prices 2023
During peak maintenance season we find that both planned and unplanned events have an exaggerated impact on price. Using 2023 as an example, prices increased as we entered maintenance season, and quickly spiked on all other market events, no matter how minor.
Customer’s Action Plan 2024
Set contract signature date ASAP to avoid peak maintenance schedule
If placing a fixed contract with an October/November start date avoid August and September, the peak maintenance season. It is easy to be caught in the trap of getting a price and rejecting it only to go to market and reprice a day or two later. Using the phrase “let’s see what tomorrow brings”. This stalling is a trap, as it forces you into a corner with no other choice as out of contract rates loom. This close to October, even if maintenance goes smoothly, the chance of the market dropping significantly i.e. 1p/kWh or 2 p/kWh is small. (29.3p/Th = 1p/kWh).
Decide if you want a Fixed, Flexible or Unity style contract:
- Fixed: Secure contract ASAP to beat peak maintenance season.
- Flexible, Bespoke or Basket: Secure contract ASAP to enable commodity team to start trading your volume to deliver a competitive and professionally risk managed price.
- Unity: If you are uncertain if you want to go fixed or flex, then opt for Unity. Act now before peak maintenance season, keep your options open with a unique contract style that allows you to switch between fixed and flexible pricing strategies. Unity gives you the ultimate fixed price contract. The framework enables you to stay in a fixed price and fix when the time is right for the annual period you want, minimising the volatility now and for the future. You can also be laissez-faire without the threat of going out of contract. If you take no action, the rates will be fixed for you the week before renewal for ultimate ease and peace of mind. If in the future you want to change to flex trading, you can do so with ease. Unity enables you to switch back and forth between fixed and flex approaches, without the need to re-tender, approve different T&Cs, pass new credit checks, or change payment terms. Once you sign the framework there is no need to go through the tender process every year, saving you time and money. You can fix at any point for a 12-month period or longer depending on your needs and market giving you the ability to act quickly and take advantage of the market position. This product enables you to focus on the timing and not the supplier, which is where the more competitive prices are to be secured.
Next Steps for Outstanding 2024 Contract Renewals:
- Set ASAP contract signature date to avoid peak maintenance season.
- Decide if you want a Fixed, Flexible or Unity contract. Still unsure? Rebecca can help.
- Advise Rebecca of your preferred contract signature date and contract type.
- Look forward to concluding your renewal and have peace of mind your energy contracts are now working for you, not the other way around.
