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UK GAS-Prices rise as temperatures dip, heating demand increases

British wholesale gas prices edged higher on Wednesday as temperature forecasts were cut leading to rising demand expectations although volumes of supplies were robust.

* Within day gas price edges 0.15 pence higher to 63.90 pence per therm by 0915 GMT

* The day-ahead gas price was up 0.40 pence to 64.25 p/therm

* The temperature forecast remained unchanged for Wednesday at 5.8 degrees Celsius but was reduced by 2.2 degrees to 3.3 degrees for Thursday

* Home gas demand, used for heating, was forecast to be 14 million cubic metres (mcm) higher than previously expected for Wednesday and 31 mcm higher for Thursday

* An unplanned gas outage at Norway’s Sleipner field was now expected to last for almost two weeks, GASSCO said

* But there was little impact on flows from Norway which were unchanged at 74 mcm along the Langeled pipeline and 21 mcm along the Vesterled pipeline

* Domestic gas production from the UK Continental shelf was also healthy at 111 mcm

* Send-out rates from Britain’s three LNG terminals were slightly higher than on Tuesday with another LNG tanker due to arrive next week

* The system was almost 15 mcm oversupplied with demand forecast at 308.3 mcm and supplies seen at 323.2 mcm

* Peak wind generation was seen to be high on Wednesday at 10.5 gigawatts (GW), rising to 10.7 GW on Thursday, compared to capacity of 12.1 GW

* January contract up 0.02 p at 65.10 p/therm

* Day-ahead gas price at the Dutch TTF hub unchanged at 23.50 euros per megawatt hour

* Benchmark Dec-18 EU carbon contract down 0.15 euro at 20.01 euros per tonne
Source: Reuters (Reporting by Sabina Zawadzki; editing by Jason Neely)

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