UK GAS-Prices fall as Norwegian flows increase

Fawad Maqsood August 2, 2019

LONDON: British wholesale gas prices fell on Friday, partly a correction of the previous day’s gains, while an increase in Norwegian pipeline flows contributed to oversupply in the system, traders said.

* Within day gas fell by 0.50 pence to 30.50 pence per therm by 0806 GMT

* Day-ahead gas was 0.10 pence lower at 31.40 pence per therm.

* The September contract was down by 0.43 pence at 33.60 p/therm

* Prices declined on Friday returning to more moderate levels after a boost the previous day, when traders increased positions due to the start of the new month, traders said.

* Norwegian flows increased day-on-day which also helped to oversupply the system and move prices lower, they said.

* Total Norwegian flows to Britain are 9 million cubic metres (mcm) higher than the previous working day at 85 mcm/day.

* The system was oversupplied by 22 mcm, with demand seen at 141.9 mcm and supply expected at 163.9 mcm per day, National Grid data showed.

* Peak wind power generation is low, at 2.3 gigawatts (GW) on Friday, falling further on Saturday to 1.3 GW.

* Average daily temperatures in Britain are forecast to reach 17.7 degrees Celsius on Friday and are seen stable through the weekend.

* Dutch day-ahead gas fell by 0.17 euros to 11.08 euros per megawatt hour.

* The Dutch month-ahead contract at the TTF hub , a benchmark for LNG prices, declined more than 4.7% to 12.13 euros per megawatt hour.

* The benchmark EU carbon price fell by 0.32 euros to 29.13 euros a tonne.

Copyright Reuters, 2019

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