UK GAS prices decline on lower consumption forecasts

• The November gas contract was 0.50 p lower at 41.50 p/therm.
• The UK gas system was balanced on Thursday with demand forecast at around 242 million cubic metres (mcm) and flows at nearly 242 mcm/day.

LONDON: British prompt wholesale gas prices were flat to lower on Thursday morning on a balanced system and lower consumption expected for next week.

Within-day gas was flat at 27.00 pence per therm at 0758 GMT, while gas for day-ahead delivery was 0.15 p down at 26.75 p/therm.

The November gas contract was 0.50 p lower at 41.50 p/therm.

The UK gas system was balanced on Thursday with demand forecast at around 242 million cubic metres (mcm) and flows at nearly 242 mcm/day, National Grid data shows.

Flows through the Langeled pipeline from Norway dipped by 5 mcm to 34 mcm/day.But that was more than offset by the gas sent out from liquefied natural gas (LNG) terminals, which rose 10 mcm to 69 mcm.

The Bu Samra LNG tanker docked at South Hook terminal on Thursday with another four tankers due to arrive by the end of next week.

Consumption for the weekend and next week is forecast lower than previously, Refinitiv Eikon data shows.

Peak wind generation is forecast at nearly 7.6 gigawatts (GW) on Thursday, falling slightly to 6.9 GW on Friday, Elexon data shows.

Lower wind output typically raises demand from gas-to-power plants.

Day-ahead gas at the Dutch TTF hub rose by 0.13 euro to 10.68 euros per megawatt hour (MWh).

The Dutch month-ahead gas contract, a benchmark for LNG prices as well as European gas, was 0.30 euro lower at 15.88 euros/MWh.

The benchmark Dec-19 EU carbon contract was down by 0.50 at 25.80 euros a tonne.