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British prompt gas prices fell on Monday as an increase in flows from Norway created a supply surplus, and as temperatures were forecast to be higher than previously expected.

* Day-ahead gas was down 0.25 pence at 66.75 pence per therm at 0922 GMT.

* An increase in gas from Norway oversupplied the system and, together with forecasts for milder weather than previously expected, was behind the falling prices, a trader said.

* Norwegian gas flows to Britain rose to 123 million cubic metres (mcm) per day, from 116 mcm/day on Friday, as gas flows through the Vesterled pipeline increased.

* Demand was forecast at 293.5 mcm/day and flows at 303.6 mcm/day, National Grid data showed.

* Average daily temperatures in Britain are expected to be 5.7 degrees Celsius on Monday, rising to 8.3 C on Tuesday, more than 3 C higher than previously seen.

* One vessel with liquefied natural gas (LNG) arrived in Britain on Sunday and two more are expected in the next seven days. .

* Power output from wind turbines is forecast to be high. Peak wind generation is forecast at 10.4 gigawatts (GW) on Monday and expected to rise to 11.5 GW on Tuesday, nearing maximum capacity.

* High output from wind turbines typically reduces demand for electricity produced in gas-fired power stations.

* Day-ahead Dutch gas at the TTF hub fell by 0.10 euros to 24.45 euros per megawatt hour.

* The benchmark Dec-18 EU carbon contract rose by 0.07 euros to 23.44 euros a tonne.

 

Copyright Reuters, 2018
 

 

 

 

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