GAS Prices fall on higher Norwegian flows, strong wind power output

• Gas prices fell on Wednesday as an increase in imports from Norway and strong wind power generation left the market oversupplied.
• Gas imports from Norway and strong output from wind turbines were behind the price rise, said a British gas trader.

British wholesale gas prices fell on Wednesday as an increase in imports from Norway and strong wind power generation left the market oversupplied.

Day-ahead gas fell by 0.75 pence to 26.25 pence/therm by 0829 GMT

The November gas contract was down by 0.40 pence to 43.30 pence per therm.

Higher gas imports from Norway and strong output from wind turbines were behind the price rise, said a British gas trader.

The gas system was oversupplied, with demand forecast at 192.6 million cubic metres (mcm) and supply at 206.1 mcm/day, National Grid data showed.

Norwegian gas flows rose to 53 mcm/day on Wednesday from 39 mcm/day the previous day. Gas flows via the Langeled pipeline were nearly double the previous day, reaching 30 mcm/day.

Wind power generation is expected to reach 7.8 gigawatts (GW) on Wednesday out of 12.1 GW capacity, according to Elexon data. It is forecast at 10.2 GW for Thursday.

High power output from wind turbines typically reduces gas-for-power demand.

Liquefied natural gas imports (LNG) were also contributing to the overall price decline in Britain, added the trader.

Britain received an LNG cargo on Tuesday and is expecting eight more vessels by the end of October.

Average daily temperatures are forecast at 8.8 degrees Celsius for Wednesday and are expected to fall to 8.5C the next day, Refinitiv Eikon data showed.

Day-ahead gas at the Dutch TTF hub rose by 0.15 euro to 10.10 euros per megawatt hour (MWh)

The Dutch month-ahead gas contract, a benchmark for LNG prices as well as European gas, was down by 0.10 euro at 16.30 euros/MWh.

The benchmark Dec-19 EU carbon contract fell by 0.26 euro to 24.78 euros a tonne.