UK GAS Prices rise as supplies from LNG terminals drop

• Traders said send-out from many from some of the country's LNG terminals was much lower on Thursday.
• The day-ahead contract was up 0.10 pence at 40.10 p/therm.
• Peak wind output is expected at around 10 gigawatts (GW) on Thursday, falling to 7.4 GW on Friday.

LONDON: British wholesale gas prices rose on Thursday morning as supplies from the country's liquefied natural gas (LNG) terminals fell, leaving the market undersupplied.

The within-day contract was up 1.05 pence at 40.90 p/therm at 0934 GMT.

The day-ahead contract was up 0.10 pence at 40.10 p/therm.

Traders said send-out from many from some of the country's LNG terminals was much lower on Thursday.

Total LNG send-out was 69 mcm, down 24 mcm from the previous day, Eikon Refinitiv data showed.

Four LNG tankers are scheduled to arrive in Britain by the end of the week, which will replenish supply.

Britain's gas system was undersupplied by 34.5 million cubic metres (mcm), with demand forecast at 310.3 mcm and flows at 275.8 mcm/day, National Grid data showed.

Output from the country's wind farms is also expected to drop on Friday, boosting demand for gas from power stations.

Peak wind output is expected at around 10 gigawatts (GW) on Thursday, falling to 7.4 GW on Friday, Elexon data showed.

Further out on the curve, most contracts also edged higher.

The December gas contract was up 0.41 p at 40.88 p/therm.

The summer 2020, contract was up 0.35 p at 38.60 p/therm Day-ahead gas price at the Dutch TTF hub up 0.17 euro at 15.35 euros per megawatt hour.

Benchmark Dec-19 EU carbon contract up 0.07 euro at 24.10 euros per tonne.