UK GAS-Prompt prices lower due to rise in Norwegian imports

LONDON: British prompt wholesale gas prices were adjusted lower on Wednesday morning due to stronger Norwegian supplies, prices further out on the curve rose.

The within-day contract fell by 0.60 pence to 12.50 p/ therm by 0859 GMT.

The day-ahead contract was down 0.10 pence at 12.50 p/therm.

Traders said more imports from Norway had left the market oversupplied, sending the prompt prices lower, while other contracts edged higher amid steady demand.

Britain's gas system was oversupplied, with demand forecast at 168.3 million cubic metres (mcm) and flows at 179 mcm/day, National Grid data showed.

Imports flows from Norway through the Langeled pipeline were at 40 mcm, up from around 24 mcm the previous day.

Gas-for-power demand was forecast at 52 mcm on Wednesday, and 53 mcm on Thursday, Refinitiv Eikon data showed.

Peak wind power generation is forecast at 4.1 gigawatts (GW) on both Wednesday and Thursday, Elexon data showed.

"UK wind power generation is expected to remain around the seasonal norm for the next two days moving above normal over the weekend," analysts at Refinitiv said in a daily research note.

The August gas contract was up 0.35 p at 13.15 p/therm.

The Winter 2020 contract was up 0.45 p at 32.20 p/therm.

The Day-ahead gas price at the Dutch TTF hub was down 0.08 euro at 4.55 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract was down 0.63 at euro at 25.95 euros per tonne.