Iog Share Discussion Threads

[masurenguy] 22/7/2022 12:04

Centrica granted licence to reopen giant Rough gas storage facility

Centrica has been granted a licence to revive Britain’s biggest gas storage facility as ministers scramble to bolster energy security. The British Gas owner is now in talks with ministers over a consumer-funded subsidy mechanism for the Rough site, which it hopes to bring back in time for this winter. The company had previously indicated that this could cost as much as £500 million. It is now hoping to revive it as a natural gas storage site as soon as September, as Russia’s invasion of Ukraine stokes fears of severe shortages if Moscow cuts supplies to Europe.

[tidy 2] 22/7/2022 11:46

UK natural gas futures extended sharp gains for the fourth consecutive session on Friday, hitting 335 pence a therm, the highest in more than 5 months, underpinned by uncertainty over Russian supplies and elevated demand from the EU. Volumes at The Nord Stream pipeline stood at 40% of capacity, the same as prior to the maintenance works but still well below levels seen earlier this year. Also, Russia's President Putin warned earlier this week that flows through the pipeline could be slashed to just 20% of capacity later this month unless a spat over sanctioned parts is resolved. Still, the pipelines linking Britain to the EU have been working at full capacity, as the UK uses its excess regasification capacity to import more LNG and resell it as natural gas to Europe. On the week, the contract is set to surge by more than 60%.https://tradingeconomics.com/commodity/uk-natural-gas

[masurenguy] 22/7/2022 11:38

Hi marvelman, looks like you been invested here for a while so you must be pleased with the 50% rise in the shareprice over the past couple of months.

[tidy 2] 22/7/2022 11:26

U.K. gas 335p therm live.

[tidy 2] 22/7/2022 10:57

Wonder how high gas will be by then. 400p therm projected this year. Probably more in reality.

[alxo82] 22/7/2022 10:45

Farrugia, my bet is that they are trying to place a financial hedge, not a physical delivery one. It is more complicated, but it does not require to set up a high amount of restricted cash to honor contractual obligations. It is something similar to the hedge that Kistos did last year.

I won't expect Rough to be operational soon, the time spent and the needed investment suggest that there are serious issues with the storage, maybe some stability issues that will consume quite a lot of time and resources with a chance of failure. I think it won't be back until 2024 as earliest.

[marvelman] 22/7/2022 10:44

Good to see you here Masurenguy

[maxidi] 22/7/2022 10:43

Good luck to one and all.

Sold all my bank stocks to buy this and very happy with the result so far. Hope it goes on to be a great move.... :o)

[masurenguy] 22/7/2022 10:37

Took an initial position here today to diversify from current renewal energy positions.

[dunderheed] 22/7/2022 10:13

You have to question why the f the government allowed it to close in the first place?
F'ing absolute idiots.

[maxidi] 22/7/2022 09:45

The cost of opening 'ROUGH' again will cost about £2 billion apparently!
It will be worth it in the long run no doubt.

IOG will gladly keep it topped up. LOL

[tidy 2] 22/7/2022 09:18

324p therm today.

[farrugia] 22/7/2022 09:18

could IOG lock in prices with some hedging at these levels? I wonder!?

Also when Centrica Storage Limited re-opens the storage gas facility at Rough gas field that should bring some more stability to prices surely? They will stop going up and down like a yoyo?

[alxo82] 22/7/2022 07:52

No mistery at all, they don't price the gas, the users of the platform do. If you see the volume, you can have an idea of the precision of their data. For example, as month ahead prices are very high, the volume is quite low, many people don't want or cannot hedge at those prices. Mind the financial liabilities that a hedge has for a company, usually they must restrict some cash in case they cannot deliver the gas.

[tidy 2] 21/7/2022 11:49

Big upside.

[bountyhunter] 21/7/2022 09:34

I'll check back later, just keep the lid on the price until tomorrow, I can't drink Foster's while working from home!

...on second thoughts maybe I could ;-)

[tidy 2] 21/7/2022 09:34

The 65p broker target was this based on 45p therm guys ?

[tidy 2] 21/7/2022 09:31

Uk gas up @ 300p/therm this morning.

[dunderheed] 21/7/2022 09:28

Your wish is my command - I'll just "take a look" to see the "depth" of market!

[bountyhunter] 21/7/2022 09:24

Can someone do a few dummy sells please to keep the price down below 37p bid as this is a non drinking work day for me!

[maxidi] 21/7/2022 08:37

36.00 - 37.00 (GBX) at 08:33:11

[bountyhunter] 21/7/2022 08:16

NS1 back but at only 30% of full capacity...

[flyer61] 21/7/2022 06:42

The gas price…..phew!…..it is going to get very difficult for many people and businesses if we see these sort of prices as the norm.