UK GAS-Prompt prices rise on lower LNG flows, undersupply
Prompt British wholesale gas prices rose on Monday morning as a drop in flows from the country’s liquefied natural gas terminals (LNG) and strong demand left the market undersupplied.
* The within-day contract was up 1.75 pence at 38.50 p/therm by 0935 GMT.
* The day-ahead contract was up 1.95 pence at 38.25 p/therm.
* Traders said lower LNG supplies, combined with strong demand for gas from power stations amid weak wind power output, had pushed prices higher.
* Britain’s gas system was under-supplied, with demand forecast at 223.5 million cubic metres (mcm) and supply forecast at 216.8 mcm/day, National Grid data showed.
* Supply from LNG terminals was expected at 23 mcm on Monday, down from 70 mcm on Friday, Refinitiv Eikon data showed.
* “This may bring upside risk to the market as only one cargo is expected to unload within our forecast horizon,” analysts at Refinitiv said in a daily market note.
* No LNG tankers are currently docked in Britain with the next arrival, the Maran Gas Troy tanker from the United States, scheduled for Nov. 12.
* Peak wind power generation is forecast at 3.8 gigawatts (GW) on Monday and 6.4 GW on Tuesday, Elexon data showed.
* Further out on the curve, prices slipped.
* The December contract was down 0.11 p at 39.85 p/therm.
* The Q1 2021 contract was down 0.45 pence at 40.40 p/therm.
* The day-ahead gas price at the Dutch TTF hub was up 0.37 euro to 13.75 euros per megawatt hour.
* The benchmark Dec-20 EU carbon contract was up 0.20 euro at 25.62 euros per tonne.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)