UK GAS-Prices rise as temperatures dip, heating demand increases

Shoaib Ur Rehman December 12, 2018

LONDON: British wholesale gas prices edged higher on Wednesday as temperature forecasts were cut leading to rising demand expectations although volumes of supplies were robust.

* Within day gas price edges 0.15 pence higher to 63.90 pence per therm by 0915 GMT

* The day-ahead gas price was up 0.40 pence to 64.25 p/therm

* The temperature forecast remained unchanged for Wednesday at 5.8 degrees Celsius but was reduced by 2.2 degrees to 3.3 degrees for Thursday

* Home gas demand, used for heating, was forecast to be 14 million cubic metres (mcm) higher than previously expected for Wednesday and 31 mcm higher for Thursday

* An unplanned gas outage at Norway’s Sleipner field was now expected to last for almost two weeks, GASSCO said

* But there was little impact on flows from Norway which were unchanged at 74 mcm along the Langeled pipeline and 21 mcm along the Vesterled pipeline

* Domestic gas production from the UK Continental shelf was also healthy at 111 mcm

* Send-out rates from Britain’s three LNG terminals were slightly higher than on Tuesday with another LNG tanker due to arrive next week

* The system was almost 15 mcm oversupplied with demand forecast at 308.3 mcm and supplies seen at 323.2 mcm

* Peak wind generation was seen to be high on Wednesday at 10.5 gigawatts (GW), rising to 10.7 GW on Thursday, compared to capacity of 12.1 GW

* January contract up 0.02 p at 65.10 p/therm

* Day-ahead gas price at the Dutch TTF hub unchanged at 23.50 euros per megawatt hour

* Benchmark Dec-18 EU carbon contract down 0.15 euro at 20.01 euros per tonne.

Copyright Reuters, 2018
 

 

 

 

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