UK GAS-Prices fall on high wind power, looming big LNG deliveries
British wholesale gas prices mostly fell early on Wednesday as expectations of strong output from the country’s wind farms curbed demand and expectations of several deliveries of LNG cargos weighed on the market. * Day-ahead gas price down 1.70 pence at 63.60 pence per therm by 0905 GMT. * Within-day gas price down 1.90 pence at 64.30 p/therm. * Traders said forecasts of high wind speeds pointed to strong electricity supply from Britain’s wind farms, cutting the amount of output needed from gas-fired power generators and therefore limiting gas demand from power plants. * Gas system oversupplied by 6.3 million cubic metres (mcm) with demand forecast at 241.9 mcm and flows at 248.2 mcm/day, National Grid data showed. * “Gas for power is a notable bearish risk as it is nominated at just 32 mcm, probably the largest reason for the oversupply currently reported by the grid,” analysts at Refinitiv said in a daily research note. * Wind power provided 20 percent of Britain’s electricity early on Wednesday, with gas at around 35 percent, National Grid data showed. * Traders said the expectation of several deliveries of liquefied natural gas (LNG) was also bearish for prices. * Four LNG tankers are expected to arrive in Britain over the next seven days. * Further out on the curve prices also mostly fell. * Dec contract down 1.36 p at 69.45 p/therm. * Q1 2019 contract down 2.00 p at 67.25 p/therm * Day-ahead gas price at the Dutch TTF hub down 0.62 euro at 24.48 euros per megawatt hour. * Benchmark Dec-18 EU carbon contract down 0.07 euro at 19.52 euros per tonne.