Wednesday, 03 March 2021 | 01:28
View by:

UK GAS-Prices fall as high wind power depresses demand

Friday, 09 August 2019 | 00:00

British wholesale gas prices fell on Thursday as sharply higher wind power generation weighed on gas-for-power demand in a market that was already expected to be slightly oversupplied.

* Day-ahead gas was 1.4 pence lower at 25.70 pence per therm by 0745 GMT.

* Within-day gas fell 0.9 pence to 25.80 pence per therm.

* The gas system was expected to be a touch oversupplied, with demand forecast at 145.7 million cubic metres (mcm) and supply seen at 149.8 mcm.

* Peak wind generation is forecast to double from 5.3 gigawatts (GW) on Thursday to 10.4 GW on Friday out of a total metered capacity of 12 GW and is expected to remain high over the weekend.

* The weekend gas contract was also down, falling 1 pence to 25 pence per therm.

* Strong winds can reduce demand for gas used in power generation; Refinitiv analysts slashed their forecast by 21 mcm to 25 mcm for Friday and reduced it by 5 mcm to 22 mcm for the weekend.

* Supplies of gas were stable, with a small rise in flows from the UK Continental Shelf offsetting an equally small reduction in flows along the Langeled pipeline from Norway.

* Several planned outages were also expected to end in the coming days, increasing production.

* Work on the Forties oil and gas system offshore Britain and the Norwegian Troll field is expected to end on Friday, although Troll will undergo another shutdown this month.

* The falls across the British and Dutch curves reflect the broader trend of weak European gas markets this year due to abundant supply, especially in the form of LNG.

* The month-ahead contract fell 0.45 pence to 31 pence per therm.

* Dutch day-ahead gas fell 0.28 euro to 9.45 euros per megawatt hour while the September contract was down 0.15 euro at 11.18 euros/MWh.

* The benchmark EU carbon price was 0.31 euro higher at 28.59 euros a tonne.
Source: Reuters (Reporting by Sabina Zawadzki; Editing by Dale Hudson)

    There are no comments available.
    In order to send the form you have to type the displayed code.