UK GAS-Prices rise on high demand, low wind and strong coal
British wholesale gas prices rose on Tuesday morning amid low wind output which has raised demand for gas from power plants.
* Within-day contract was up 1.00 pence at 56.75 pence/therm at 0817 GMT.
* Day-ahead gas rose by 1.00 pence to 56.60 pence per therm.
* “Low wind (output) raised prices. Tomorrow is a very strong day (for demand) in UK gas-to-power … all in all a bit bullish,” said a British gas trader.
* Bullish coal prices are also driving up gas prices, he added.
* Benchmark European API2 2019 coal futures hit a five year high earlier on Tuesday, rising 2 percent to $91.00 a tonne.
* The British gas market was slightly undersupplied, with demand forecast at 189.5 million cubic metres and flows at 185.4 mcm/day, National Grid data showed.
* Peak wind power generation is forecast at 4.4 gigawatts (GW) on Tuesday but is expected fall to 2.7 GW on Wednesday, National Grid data showed. The output is low versus the total capacity of Britain’s wind turbines which is 12.1 GW.
* Gas supply from Norway to Britain was stable at 75 million cubic metres (mcm) per day, just above 50 percent of the pipeline system’s export capacity.
* Average daily temperatures in Britain are seen at about 18.1 degrees Celsius on Tuesday, and are expected to fall to 17.7 C on Wednesday, Thomson Reuters Eikon data showed.
* Britain is expecting one liquefied natural gas (LNG) vessel to arrive on July 20 at the Milford Haven port
* The August contract was up 0.80 pence at 57.60 pence/therm.
* Day-ahead gas at the Dutch TTF hub rose by 0.27 euro to 22.40 euros per megawatt-hour.
* The benchmark Dec-18 EU carbon contract was up 0.18 euros at 15.25 euros a tonne.
Source: Reuters (Reporting by Lefteris Karagiannopoulos in Oslo; editing by Nina Chestney)