UK GAS Prices down on strong wind output, LNG supply

• Liquefied natural gas (LNG) send-out is expected to be higher than previously forecast for this month.
• Peak wind generation is expected to be around 12.2 gigawatts (GW) on Thursday.

LONDON: British wholesale gas prices declined on Thursday morning on strong wind output and liquefied natural gas supply.

Day-ahead gas was 0.75 pence lower at 21.00 p/therm at 0741 GMT.

The December contract was down 0.40 pence at 48.60 p/therm.

"Wind is strong today and LNG supply is heavy this month," a gas trader said.

Liquefied natural gas (LNG) send-out is expected to be higher than previously forecast for this month.

Seven tankers are expected to arrive in Britain up to November.

Heating demand is forecast lower due to a slight rise in temperatures, while wind output is at full metered capacity which typically results in lower gas-to-power demand from utilities.

Peak wind generation is expected to be around 12.2 gigawatts (GW) on Thursday, declining slightly to 11.8 GW on Friday, Elexon data shows.

Demand is forecast at around 191 million cubic metres (mcm) and supply at 188 mcm/day, leaving the system slightly undersupplied by 3 mcm, National Grid data shows.

In the Dutch gas market, weekend gas at the TTF hub was down 0.30 euro at 8.00 euros per megawatt hour (MWh).

The Dutch month-ahead gas contract, a benchmark for LNG prices as well as European gas, was down 0.23 euro at 15.65 euros/MWh.

The benchmark Dec-19 EU carbon contract slipped 0.05 euro at 22.60 euros a tonne.