UK GAS-Prices rise on higher consumption levels
British wholesale gas prices rose on Monday morning as demand for heating and from gas-to-power plants increased.
* Gas for immediate delivery rose by 1.00 pence to 29.50 pence per therm by 0900 GMT.
* Gas for day-ahead delivery was 2.00 pence higher at 30.50 p/therm.
* Consumption is higher than Friday due to colder weather and stronger gas-for-power demand is forecast, traders said.
* “A brief period with mild weather we saw in the UK during weekend is over now. For next two weeks temparetures in the UK are forecast to stay below seasonal normal,” Refinitiv gas analysts said.
* The system was undersupplied by around 8 million cubic metres (mcm), with demand forecast at around 246 mcm and flows at 238 mcm/day, National Grid data shows.
* Flows through the Langeled pipeline from Norway have recovered to 30 mcm/day, after a drop on Friday to around 12 mcm/day due to the Troll field flexing production.
* Due to lower temperatures, Langeled flows should increase further to around 40-50 mcm/day by the end of the week and reach full capacity of around 70 mcm/day next week.
* However, liquefied natural gas send-out from the South Hook terminal has been adjusted lower.
* Peak wind generation is forecast at nearly 7 gigawatts (GW) on Monday and nearly 8 GW on Tuesday, out of a total metered capacity of 12.1 GW, Elexon data shows.
* December gas was 0.60 p higher at 43.25 p/therm.
* Day-ahead gas at the Dutch TTF hub for immediate delivery rose by 2.55 euro to 13.70 euros per megawatt hour (MWh).
* The Dutch month-ahead gas contract, a benchmark for LNG prices as well as European gas, dipped by 0.05 euro to 16.20 euros/MWh
* The benchmark Dec-19 EU carbon contract declined by 0.35 euro to 24.94 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)