Tuesday, 22 September 2020 | 10:33
View by:

UK GAS-British wholesale gas prices fall on rising LNG, Norway gas supplies

Tuesday, 03 December 2019 | 00:00

Prompt British wholesale gas prices fell on Monday morning as rising demand was offset by stronger supplies from liquefied natural gas (LNG) terminals and Norway.

* The within-day contract was down 0.55 pence at 39.90 p/therm by 0945 GMT.

* The day-ahead contract was down 0.55 pence at 39.90 p/therm.

* “Consumption in the UK is expected to be notably higher today compared to yesterday and Friday. However, strong increase in sendout from all three UK LNG terminals should be an important reason for oversupply,” analysts at Refinitiv said in a daily research note.

* Britain’s gas market was oversupplied, with demand forecast at 340 million cubic metres (mcm) and supply flows forecast at 348 mcm.

* LNG supply from South Hook rose to 44 mcm/day on Monday morning, up from an average of 23 mcm/day in November, while supply from Dragon and Isle of Grain terminals was also up.

* The average temperature in Britain is expected at 2.2 degrees Celsius on Monday, Eikon Refinitiv data showed.

* Temperatures are seen rising later in the week, with the average forecast at 8.2 degrees by the weekend.

* Peak wind power generation is forecast at 5.4 gigawatts (GW) on Monday, rising to 6.9 GW on Tuesday, National Grid data showed.

* Gas supplies from Norway rose by 12 mcm/day compared to the previous session’s delivered volumes due to end of an outage which had previously cut flows via FLAGS pipeline.

* More than a dozen LNG tankers are scheduled to arrive in Britain by Dec. 15.

* Further out on the curve, prices also eased.

* The January gas contract was down 1.10 p at 41.75 p/therm.

* The summer 2020 contract eased 0.60 p to 37.20 p/therm.

* The day-ahead gas price at the Dutch TTF hub was down 0.17 euro at 15.48 euros per megawatt hour.

* The benchmark Dec-19 EU carbon contract was down 0.49 euro at 24.73 euros per tonne.
Source: Reuters (Reporting by Nerijus Adomaitis, editing by Susanna Twidale)

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