UK GAS-Prices mostly down on healthy supply, reduced demand
British wholesale gas prices were mostly down on Friday morning due to a well-supplied system and expected reduced consumption.
* Gas for immediate delivery was 1.55 pence lower at 58.25 pence per therm at 0815 GMT
* Gas for weekend delivery fell by 2.51 pence to 57.25 p/therm
* “There is more LNG (liquefied natural gas) on the way and temperatures are going to be warm, peaking on Sunday,” said a UK gas trader
* Average temperatures in Britain are forecast at 16.5 degrees Celsius at the weekend and 15.2 degrees C next week, Thomson Reuters Eikon data shows, which should reduce local heating demand
* The system is balanced with flows and demand forecast at around 143 million cubic metres (mcm), according to National Grid data
* Flows through the Langeled pipeline from Norway are at 32 mcm/day.
* “The system looks well-supplied next week and we would not be surprised if imports went down with more gas heading towards the Continent,” said Thomson Reuters gas analyst Adrian Wolf
* An outage at North Morecambe gas sub-terminal is due to end at midday but it has been quite erratic so there is a possibility this could be extended
* Liquefied natural gas supply looks robust over the next week or so with three tankers scheduled for Britain
* The day-ahead gas price edged up by 0.07 pence to 58.90 pence per therm
* Wind output is low. Peak wind generation is forecast at 884 megawatts (MW) on Saturday, down from 931 MW on Friday, Elexon data shows. This could increase gas-to-power demand.
* Day-ahead gas price at the Dutch TTF hub edged down by 0.05 euro to 22.40 euros per megawatt hour
* Benchmark Dec-18 EU carbon contract was flat at 14.91 euros a tonne
Source: Reuters (Reporting by Nina Chestney)