ICE UK nat gas Aug. futures settle at 81.71 pence/therm

ICE UK nat gas Aug. futures settle at 81.71 pence/therm

On July 2, 2025, ICE UK natural gas futures settled at 81.71 pence per therm, according to the latest market data. This settlement comes amidst a period of relative stability in the UK natural gas market, which has been influenced by robust supply from Norway and consistent deliveries of liquefied natural gas (LNG).

The UK natural gas futures have been steady around 80 pence per therm, tracking the European benchmark. This stability is supported by European gas storage levels being over 60% full and Norwegian gas flows normalizing with minimal maintenance expected in July [2]. Additionally, the recent landmark £20 billion deal signed between Centrica and Norway’s Equinor to supply 5 billion cubic meters (bcm) of natural gas annually to the UK through 2035 has bolstered the country's energy security. This agreement is expected to meet nearly two-thirds of the UK's demand, with Norway contributing over half [2].

The UK natural gas market has shown resilience, with prices increasing by 7.77 GBp/Thm or 9.63% since the beginning of 2024 [3]. Analysts predict that UK natural gas will trade at 97.31 GBp/Thm by the end of the current quarter and at 102.41 GBp/Thm in 12 months, reflecting the market's forward expectations [3].

Intercontinental Exchange (ICE), the leading global provider of technology and data, continues to see robust demand for its energy markets. The company reported record open interest (OI) for its natural gas and oil futures and options markets, demonstrating the critical role of benchmarks like ICE Brent in helping the market manage risk [1]. ICE's natural gas futures markets hit a record OI of 24.17 million on June 25, 2025, while its global oil futures and options markets hit a record OI of 17.57 million on June 24, 2025 [1].

In summary, the ICE UK natural gas futures settlement at 81.71 pence per therm reflects the market's stability and resilience, driven by strong supply and strategic partnerships. The ongoing support from Norwegian gas flows and the recent landmark deal between Centrica and Equinor are key factors contributing to this stability.

References:
[1] https://www.businesswire.com/news/home/20250630606203/en/ICEs-Natural-Gas-and-Oil-Markets-at-Record-Open-Interest
[2] https://www.tradingview.com/news/te_news:468287:0-uk-natural-gas-market-stabilizes/
[3] https://tradingeconomics.com/commodity/uk-natural-gas