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UK GAS-Prices mostly down on strong supply

British wholesale gas prices were mostly lower on Friday morning due to strong supply, especially from liquefied natural gas.

* Within-day gas price down 0.45 pence at 36.60 p/therm at 0942 GMT.

* April gas declined by 0.50 pence to 36.50 p/therm

* Strong supplies, especially from expected arrivals of liquefied natural gas (LNG) tankers was weighing on prices, a trader said.

* Seven LNG tankers are expected to arrive in Britain in the next two weeks.

* Asian spot prices for LNG this week hit $4.65 per million British thermal units, their lowest since May 2016.

* The gas system is slightly oversupplied, with demand forecast at 223.7 mcm and flows at 225.1 mcm/day, National Grid data shows.

* However, the day-ahead was 0.20 pence higher at 36.90 p/therm due to slightly colder weather expected next week.

* “Temperatures in the UK are expected to drop slightly below seasonal normal next week. As a result local distribution zone consumption is expected strongly up on the day-ahead,” analysts at Refinitiv said in a daily research note.

* Average temperatures in Britain for next Monday are forecast at 7 degrees Celsius, a 3.4 degree drop on previous forecasts, Refinitiv Eikon data shows.

* Peak wind power generation is forecast at 8.8 gigawatts (GW) on Friday and 6.6 GW on Saturday, National Grid data shows.

* Wind farms were providing 20 percent of Britain’s electricity on Friday morning, with gas-fired power plants contributing almost 40 percent.

* Further along the curve, the summer 2019 contract was down 0.70 p at 37.00 p/therm.

* The April contract at the Dutch TTF hub was down 0.10 euro at 14.43 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contract declined by 0.19 euro to 20.75 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale and Nina Chestney)

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