UK GAS-Prices fall on strong LNG imports
UK wholesale gas prices fell on Friday morning as an increase in imports of liquefied natural gas (LNG) led to an oversupplied system amid lower demand.
* Day-ahead gas price fell by 1.35 pence to 43.65 pence per therm by 0940 GMT.
* Weekend contract is down by 0.60 pence to 43.35 p/therm.
* UK gas system is expected to be 6.3 million cubic metres (mcm) oversupplied, with demand forecast at 261 mcm/day and supply at 267.3 mcm/day, National Grid data shows.
* Supply has increased, with LNG send-out to the system jumping to 70 mcm/day from 53 mcm/day on Thursday.
* Britain will receive seven LNG cargoes by mid-March.
* Refinitiv analysts expect reduced demand for gas-to-power production due to slightly stronger wind generation.
* Peak wind generation was expected to rise to 3.5 gigawatts (GW) on Friday from around 2 GW on Thursday.
* There is also small increase in pipeline imports from Norway. A number of outages could affect production in Norway and Britain in March.
* Average temperatures in Britain are expected to go down slightly next week, but are forecast to be at around seasonal norms in March and the beginning of April.
* UK April gas contract is down 0.96 pence at 43.25 p/therm.
* Further along the curve, the summer 2019 contract fell by 0.85 pence to 44.40 p/therm.
* The day-ahead gas price at the Dutch TTF hub is down 0.40 euros at 17.35 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract fell by 0.45 euro to 21.24 euros a tonne.
Source: Reuters (Reporting by Ekaterina Kravtsova; editing by Nina Chestney)