UK GAS-Prices mixed as wind stays high, LNG send-out falls
British wholesale gas prices were mixed on Thursday as wind generation remained at maximum levels but gas supplies were reduced due to lower send-out rates from a liquefied natural gas (LNG) terminal.
* Within-day gas price down 0.15 pence at 39.40 pence per therm by 0900 GMT
* Day-ahead gas rose by 0.25 pence to 39.50 p/therm
* Prices dipped below the 40 p/therm mark on Wednesday for the first time since August 2017, having steadily fallen from a peak of 80 p/therm last September.
* Wind power continues to be strong, with peak wind generation expected to remain at over 12 gigawatts – the maximum metred capacity – on Thursday and Friday, according to Elexon data.
* Gas flows from Norway are stable at 71 million cubic metres (mcm) and receipts from the UK Continental Shelf were expected to remain steady at 130 mcm/day.
* A number of labour strikes are planned at British gas production terminals but Wednesday’s industrial action appeared to have no impact on supply and prices.
* Another LNG tanker is expected to arrive in Britain by next week, the BW Tulip from Russia, bringing the total to five in the next seven days.
* But send-out from LNG terminals is 11 mcm lower on Thursday as the Isle of Grain terminal waits to receive its next cargo.
* The gas system is slightly undersupplied, with demand expected at 234.2 mcm and supply seen at 230.8 mcm/day, National Grid data shows.
* On the demand side, average temperature forecasts for Thursday increased by 0.9 degrees Celsius to 8.2 degrees and by 0.7 degrees Celsius to 9.0 degrees on Friday.
* The April contract inched up by 0.15 pence to 39.40 p/therm.
* Day-ahead gas at the Dutch TTF hub edged down by 0.05 euro to 15.85 euros per megawatt hour.
* The benchmark Dec-19 EU carbon contract was 0.35 euro higher at 22.62 euros per tonne.
Source: Reuters (Reporting by Sabina Zawadzki; editing by Nina Chestney)