UK GAS-Prices slightly higher on low wind output, oversupply

LONDON: British wholesale gas prices were slightly higher on Friday morning due to low wind output and oversupply.

The day-ahead contract edged up by 0.10 pence to 39.85 pence per therm by 0829 GMT.

The November contract was 0.25 pence higher at 40.25 pence per therm.

Gas-for-power consumption should remain strong and stable at 67 million cubic metres (mcm). However on Monday gas-for-power demand is forecast to drop to 49 mcm due to stronger wind output, Refinitiv gas analysts said.

Peak wind generation is expected to be 2.5 gigawatts on Friday and 1.5 GW the next day, Elexon data shows.

Low wind output typically raises demand for gas from power plants.

Slightly milder weather is forecast for next week and there is stronger liquefied natural gas send-out from Dragon.

Exports to Britain from Norway are stable at 93 mcm.

The gas system was around 5 million cubic metres (mcm) over-supplied, with demand forecast at 251 mcm and flows at 256 mcm/day, National Grid data showed.

After a Norway oil and gas worker strike ended last week, and flows have rebounded, there is still time for storage capacity holders to make up injections, consultancy Energy Aspects said.

"We expect total European stocks to finish October around 99.3 billion cubic metres," the analysts said.

In the Dutch gas market, the November gas price at the TTF hub was up 0.20 euro at 14.35 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract edged up by 0.04 euro to 25.00 euros a tonne.