UK GAS-Prices rise on colder weather, lower LNG supplies

• The gas system was undersupplied by around 6 million cubic metres (mcm), with demand forecast at 227 mcm and flows at 221 mcm/day, National Grid data shows.
• Peak wind generation is forecast at 3.3 gigawatts (GW) on Tuesday, rising slightly to 3.7 GW on Wednesday.

British wholesale gas prices rose on Tuesday morning as colder weather drove household gas demand, while supplies from liquefied natural gas (LNG) terminals fell.

The within-day contract was up 0.90 pence at 16.00 pence per therm by 0843 GMT.

The day-ahead contract was 0.92 pence higher at 15.80 pence per therm.

The gas system was undersupplied by around 6 million cubic metres (mcm), with demand forecast at 227 mcm and flows at 221 mcm/day, National Grid data shows.

Analysts at Refinitiv said the system was left undersupplied on rising household demand due to colder weather, while LNG supplies from the Isle of Grain terminal fell by 17 mcm/day.

Temperatures in Britain, however, were expected to rise towards Friday, with the rest of April being warmer than normal, but weaker LNG deliveries might support the prices, they added.

Peak wind generation is forecast at 3.3 gigawatts (GW) on Tuesday, rising slightly to 3.7 GW on Wednesday.

The gas price for winter 2020 delivery was down 0.20 pence at 33.50 p/therm.

Oil prices edged lower on Tuesday, with investors apparently unconvinced that record supply cuts could soon balance markets hit by the coronavirus pandemic, though a predicted plunge in US shale output provided some support.

The Dutch gas price for May delivery at the TTF hub was down by 0.17 euro at 7.13 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract was 0.52 euro lower at 20.56 euros a tonne.