UK GAS-Prices rise on cooler temperatures, lower wind power output
British wholesale gas prices rose on Wednesday morning as forecasts for cooler temperatures and lower output from the country’s wind farms led to an increase in demand.
* Day-ahead gas price up 0.50 pence at 59.90 p/therm by 0832 GMT
* Within-day contract up 0.70 p at 59.90 p/therm
* Britain’s daily average temperature is forecast at 17.2 degrees Celsius on Wednesday, falling to 16.1 degrees C on Thursday, according to Thomson Reuters data, down from recent highs nearing 30 C.
* “LDZ (local distribution zone demand) is forecast 2 million cubic meters (mcm) up for day-ahead. Gas-for-power demand is also expected to be stronger on lower wind speeds tomorrow,” analysts at Thomson Reuters said in a daily research note.
* Peak wind power generation is forecast at 3.2 gigawatts (GW) on Wednesday, falling to 2.8 GW on Thursday, National Grid data showed, well below Britain’s total wind power capacity of 12 GW.
* Gas system slightly oversupplied, with demand forecast at 164.2 mcm and flows at 168.4 mcm/day, National Grid data shows
* Further out on the curve, prices also rose.
* September contract up 0.61 p at 60.50 p/therm.
* Winter 2018 contract up 0.47 p at 65.75 p/therm
* Day-ahead gas price at the Dutch TTF hub up 0.07 euro at 22.80 euros per megawatt-hour
* Benchmark Dec-18 EU carbon contract down 0.03 euro at 17.48 euros per tonne.
Source: Reuters (Reporting by Susanna Twidale; editing by Nina Chestney)