- Higher wind power output is likely to lower day-ahead gas-for-power demand and there is higher LNG send-out, Refinitiv gas analysts said.
LONDON: British prompt wholesale gas prices fell on Thursday morning as higher wind output was expected to lead to lower gas-for-power demand and liquefied natural gas (LNG) send-out rose.
Within-day gas price was down 1.00 pence at 42.50 p/therm, by 0914 GMT.
The day-ahead contract was down 1.45 pence at 42.25 p/therm.
Higher wind power output is likely to lower day-ahead gas-for-power demand and there is higher LNG send-out, Refinitiv gas analysts said.
Peak wind generation is forecast at 8 gigawatts (GW) on Thursday, rising to 13.2 GW on Friday, out of total metered capacity of around 18 GW, Elexon data showed.
Total LNG sendout to Britain is nominated at 83 mcm/d, 7 mcm higher than yesterday due to higher sendout from the South Hook terminal, Refinitiv Eikon data showed.
The system was slightly oversupplied by 7 million cubic metres (mcm), with demand forecast at 327 mcm and supply at 334 mcm/day, National Grid data showed.
However, cold temperatures and therefore higher demand for heating could provide some upside support to prices.
In both Britain and north-west Europe, below seasonal normal temperatures are forecast for the rest of this week and into next week.
The weekend contract was 0.50 pence lower at 42.75 p/therm.
In the Dutch gas market, the January price was 0.50 euro lower at 14.50 euros per megawatt hour.
The benchmark Dec-20 EU carbon contract was down 0.20 euro at 29.35 euros a tonne.