International

UK GAS-Prices fall on mild temperatures, oversupply

British wholesale gas prices fell on Monday, the first trading day of the summer gas season, as mild temperatures and robust gas imports oversupplied the system.

* Within-day gas prices were down 0.70 pence at 34.00 p/therm as of 0753 GMT.

* Day-ahead gas fell by 0.95 pence to 34.50 pence per therm.

* The oversupplied system was behind Monday’s decline in gas prices, a British gas trader said, attributing the demand deficit to mild temperatures and healthy flows from Norway.

* Gas demand in Britain was forecast at 259.7 million cubic metres (mcm) per day and flows at 276.4 mcm/day, National Grid data showed.

* Average daily temperatures in Britain are expected to be 6.9 degrees Celsius on Monday and are forecast to fall to 5.9 C on Tuesday.

* Norwegian gas flows to Britain rose slightly to 95 mcm/day from Friday’s 94 mcm/day.

* Peak wind power generation is forecast at 6.0 gigawatts on Monday and is expected to fall to 4.3 GW the next day, National Grid data showed. The total capacity of the country’s turbines is 12.1 GW.

* April 1 marks the start of the so-called summer gas season, where there is typically lower demand for heating and more injections into storage when prices are lower.

* Storage levels are already high as unprecedented volumes of liquefied natural gas (LNG) have come to northwest Europe in the first quarter.

* Britain expects six liquefied natural gas tankers to arrive by April 7.

* An increasing number of LNG cargoes are heading to Europe as Asian spot prices have fallen to their lowest in nearly three years, driven by excess supply and a lack of buying in Asia.

* The May contract fell 1.28 pence to 33.60 p/therm.

* The benchmark Dec-19 EU carbon contract was down by 0.04 euros to 21.50 euros per tonne.

https://www.hellenicshippingnews.com/uk-gas-prices-fall-on-mild-temperatures-oversupply-2/