LONDON: British wholesale gas prices were mixed on Wednesday, with an oversupplied system weighing on within-day prices and forecasts of lower wind generation leading to higher gas demand supporting day-ahead prices.
* Within-day gas was 0.75 pence lower at 32.50 pence per therm by 0855 GMT.
* Day-ahead gas was 0.50 pence higher at 33.00 p/therm.
* The system was oversupplied by 8 million cubic metres (mcm), with demand forecast at 236.5 mcm and supply seen at 244.8 mcm.
* Demand was far higher than seasonal norms of around 185 mcm due to below average temperatures, which are expected to climb later in the week.
* Norwegian gas flows to Britain rose 4 mcm to 73 mcm, helped by higher flows along the Langeled pipeline.
* Peak wind generation was expected to remain high at 8.8 gigawatts (GW) but that will fall to 6.0 GW on Thursday.
* High winds tend to reduce demand for gas used in power generation; gas for power demand for Wednesday is 37 mcm lower than previously expected at 27 mcm although that will climb to 39 mcm on Thursday.
* Send-out from liquefied natural gas (LNG) terminals is expected to be weaker by 6 mcm due to lower activity at the Dragon and Isle of Grain terminals.
* However, two tankers are due to discharge this week with another two next week, keeping send-out rates at still above that of recent years.
* The June gas contract was up 0.3 pence to 32.20 p/therm
* Day-ahead gas price at the Dutch TTF hub fell 0.18 euro to 14.30 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract fell 0.38 euro to 26.02 euros a tonne.
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