UK GAS-Prices rise on colder weather outlook, lack of LNG arrivals
British wholesale gas prices rose on Wednesday morning due to expectations of lower temperatures in the coming week and a lack of liquefied natural gas (LNG) shipments confirmed to come to Britain.
Gas for within-day delivery rose by 5.25 pence to 38.25 pence per therm by 0823 GMT, while day-ahead gas was up 2.15 pence at 38.25 pence per therm.
“Forecasts are showing colder weather coming but there are also still concerns about the complete lack of LNG tankers set to arrive,” a UK gas trader said.
Below average temperatures are expected in Britain this week and next, Thomson Reutersmetereologist Georg Muller said.
Meanwhile, there are no LNG tankers due to arrive in Britain.
Imports from Norway through the Langeled pipeline have also dropped to 27 mcm from 36 mcm in the previous session but flows should pick up again on Thursday as consumption is forecast to increase, said Cecile Langevin, gas analyst at Thomson Reuters.
Despite this, the gas system was oversupplied by around 7 million cubic metres (mcm) on Wednesday, with demand forecast to be 193.1 mcm and flows at 200.5 mcm/day, National Grid data shows.
Flows from the UK Continental Shelf (UKCS) are 7 mcm higher than average flows on Tuesday due to the end of maintenance at St Fergus TOM; higher St Fergus Mobil flows and more flows into St Fergus Shell as imports from Norway through FLAGS rose.
In Britain’s power market, prices for baseload day-ahead power rose by 20 percent to 46.50 pounds per megawatt hour (MWh).
In the Netherlands, the day-ahead gas price at the TTF hub rose by 0.58 euro to 14.40 euros per MWh.
In the European carbon market, the benchmark Dec. 16 contract was 0.15 euro higher at 5.36 euros a tonne.