LONDON: Prompt natural gas prices in Britain rose on Thursday morning as outages at nuclear plants and lower wind power output led to higher demand for gas from power generators.
Prices for within-day delivery were trading at 41.25 pence per therm at 0817 GMT, up 1.25 pence or around 3 percent since their last settlement. Prices for delivery on Friday were also up 1.25 pence at 41.25 pence per therm.
"The main driver is CCGT (gas plant) consumption which is up sharply day on day due to lower wind production and the impact of nuclear and coal plant outages," analysts at Thomson Reuters Point Carbon said.
With supply flows at about 148.8 million cubic metres (mcm) per day on Thursday and demand expected to be about 159.6 mcm, the system was 10.8 mcm undersupplied, National Grid data showed.
Britain currently has almost 3,000 MW, around a third of its of nuclear capacity, off line while wind generation is also forecast to almost halve on Thursday ramping up demand for gas.
Wind power output in Britain fell to below 1,600 MW on Thursday from levels over 3,200 MW on Wednesday and is expected to remain low for the rest of the week, National Grid data showed.
Further along the curve, gas for September delivery was 0.55 pence higher at 42.50 pence per therm and the October contract was up 0.65 pence at 50.75 pence per therm.
In Britain's power market the nuclear outages helped to push up prices. Power for day-ahead baseload delivery traded at 40.30 pounds per megawatt hour, up 0.90 pounds.
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