UK GAS-Prompt prices decline amid ample supply

LONDON: British prompt wholesale gas prices mostly declined on Thursday morning due to ample supply.

Gas for immediate delivery was down by 1.00 pence at 39.00 pence per therm by 0901 GMT.

The December contract was down 0.23 pence at 39.05 p/therm.

The system was oversupplied by around 16 million cubic metres (mcm), with demand forecast at 296 mcm and flows at 312 mcm/day, according to National Grid data.

"The market looks comfortably supplied, despite weak wind and colder weather," a gas trader said.

Another trader said there might be a correction due after prices gained ground this week in expectation of a drop in temperatures.

Total Norwegian exports are up, and expected liquefied natural gas send-out is up from the previous working day.

An outage at the Visund field is due to end tomorrow which would increase Norwegian exports by 9 mcm.

On the demand side, gas-for-power demand in Britain is 12 mcm higher for today but is expected to drop by 7 mcm tomorrow, Refinitiv Eikon data showed.

The day-ahead contract edged up by 0.05 pence to 39.25 p/therm.

Wind output is low, which typically increases demand from power plants.

Peak wind generation is forecast at 1.7 gigawatts (GW) on Thursday and 1.8 GW on Friday, out of total metered capacity of around 18 GW, Elexon data shows.

The December price at the Dutch TTF hub rose by 0.21 euros to 14.00 euros per megawatt hour due to higher consumption.

The benchmark Dec-20 EU carbon contract was 0.17 euro lower at 27.45 euros a tonne.