Tuesday, 09 March 2021 | 13:41
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UK GAS-Prices fall on milder weather, healthy supply

Tuesday, 23 February 2021 | 01:00

The British day-ahead wholesale gas price fell on Monday morning as milder weather forecasts weighed on demand and due to a steady stream of liquefied natural gas (LNG) arrivals.

* The day-ahead contract was down 2.45 pence at 40.40 p/therm by 1012 GMT.

* The March contract was down 1.54 p at 40.45 p/therm, with both contracts hitting their lowest levels since early December.

* Prices fell due to mild weather and low demand which would extend into March, traders said.

* The British gas system was over-supplied, with demand forecast at 251.3 million cubic metres (mcm) and supply at 257.6 mcm/day, National Grid data showed.

* Import flows from the continent via the IUK and BBL interconnectors rose to 10 mcm/day and 18mcm/day respectively on Monday morning, from 5 mcm/day on Friday, analysts at Refinitiv said.

* Gas-for-power consumption would drop sharply on the day-ahead, they added, cutting their forecast by 31 mcm to 30 mcm/day for Tuesday.

* Peak wind generation is forecast at 6.9 gigawatts (GW) on Monday, rising to 14.6 GW on Tuesday, out of total metered capacity of around 18 GW, Elexon data showed.

* Anther bearish factor was the resumption of LNG exports from the United States after freezing weather halted operations last week, with several tankers headed to Europe, traders said.

* The March gas price at the Dutch TTF hub was down 0.50 euro at 15.95 per megawatt hour, a fresh two-month low.

* The benchmark Dec-21 EU carbon contract was down 0.32 euro at 37.08 euros per tonne.
Source: Reuters (Reporting by Nora Buli in Oslo; editing by Nina Chestney)

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