UK GAS-Prices retreat from highs as imports from Norway rise
British wholesale gas prices eased from recent highs on Friday morning, as a ramp-up in imports from Norway left the market oversupplied.
The day-ahead contract was down 2.00 pence at 139.00 p/therm by 0804 GMT.
Imports from Norway through the Langeled pipeline were expected at 32 million cubic metres (mcm), up from 26 mcm the previous day, as the impact of some supply outages in Norway eased.
Gas prices have soared, with many contracts reaching record highs across Britain and Europe over the past few months on factors ranging from low inventories and strong buying in Asia, making it more difficult for Europe to attract liquefied natural gas (LNG) cargos.
“Bullish concerns remain in place, LNG outlook remains weak with no cargoes currently scheduled to arrive at UK terminals… however the UK system has been comfortable of late despite weak renewable output,” Refinitiv analysts said in a daily research note.
Low renewable output typically leads to higher demand for gas from gas-fired power plants.
Peak wind power generation is forecast at 2.5 gigawatts (GW) on Friday rising to 4.2 GW on Saturday, Elexon data showed.
Britain’s gas system was oversupplied, with demand forecast at 138.8 mcm and flows at 147.2 mcm/day, National Grid data showed.
The October contract TRGBNBPMV1 fell 2.50 pence to 140.50 p/therm.
The October gas price at the Dutch TTF hub TRNLTTFMc1 was down 0.96 euro at 55.96 per megawatt hour.
The benchmark Dec-21 EU carbon contract CFI2Zc1 was down 0.59 euro at 62.16 euros per tonne.
The benchmark Dec-21 British carbon contract UKAFMc1 was down 0.35 pounds at 53.70 pounds per tonne.
Source: Reuters (Reporting by Susanna Twidale; editing by Uttaresh.V)