UK GAS-Prices rise on Norwegian outage, cooler temperatures
British wholesale gas prices rose on Thursday morning due to an outage in Norway and as lower-than-expected temperatures led to higher consumption forecasts.
* Day-ahead gas price up 1.00 pence at 64.00 pence per therm at 0900 GMT.
* Gas for within-day delivery 2.45 pence higher at 65.00 p/therm.
* Flows from Norway are expected to be 14 to 15 million cubic metres (mcm) lower on Thursday and Friday due to an outage at the Kollsnes plant.
* Gas traders said although that was affecting the continent, buying from British sources had increased to safeguard against any further unexpected outages.
* “It’s buying ahead of any other issues on the (Continental Shelf) NCS. I think we’re an extra 15 mcm down on flows there,” one gas trader said.
* “There is also an outage at Oseberg … this is due to them shutting down the plants as a precaution due to the ship collision nearby,” another trader said.
* Temperature forecasts for Thursday were reduced by 2.5 degrees Celsius to 8.7 degrees on average.
* Gas consumption was expected to be higher than first forecast, by 14 mcm to 161 mcm, according to Refinitiv Eikon data.
* The gas system is oversupplied by around 6 mcm with demand forecast at 224.3 mcm and flows at 230.3 mcm, according to National Grid data.
* Peak wind generation is forecast at 9.6 gigawatts (GW) on Thursday and 10.1 GW on Friday, Elexon data shows.
* December gas contract up 0.4 pence at 68.25 p/therm.
* Dutch day-ahead gas price up 0.2 euro at 24.50 euros per megawatt hour.
* Benchmark Dec-18 EU carbon contract rose by 0.71 euro to 19.33 euros a tonne.
Source: Reuters (Reporting by Sabina Zawadzki; Editing by Dale Hudson)