UK GAS-Prompt prices edge higher on lower LNG supply

UK GAS-Prompt prices edge higher on lower LNG supply

Prompt British wholesale gas prices edged higher on Wednesday morning as lower supply form the country’s liquefied natural gas(LNG) terminals left the market slightly undersupplied.

* The within-day contract was up 0.35 pence at 14.00 p/therm by 0933 GMT.

* Traders said demand is still fundamentally weak but supply has been adapting with lower imports and fewer LNG tankers arriving helping to buoy prices.

* Britain’s gas system was undersupplied by 9.2 million cubic metres (mcm) with demand forecast at 198.5 mcm and flows at 189.3 mcm/day, National Grid data showed.

* “LNG imports have been declining in the last couple of weeks, with a drop of around 20%,” Giacomo Masato, Research Analyst at Marex Spectron said in a research note.

* Supply from Britain’s LNG terminals was at 53 mcm on Wednesday, down from 64 mcm the previous day, Refinitiv Eikon data showed.

* Forecasts for low wind power generation were also expected to lead to a small increase in gas demand from power plants.

* Peak wind power production was forecast at 3.7 gigawatts (GW), falling to 2.1 GW on Thursday, Elexon data showed.

* Further out on the curve prices were stable.

* The Q3 2020 contract inched down by 0.02 p to 16.56 p/therm.

* The day-ahead gas price at the Dutch TTF hub was up 0.17 euro at 5.47 euros per megawatt hour.

* The benchmark Dec-20 EU carbon contract was up 0.01 euro at 19.10 euros per tonne.

https://www.hellenicshippingnews.com/uk-gas-prompt-prices-edge-higher-on-lower-lng-supply/

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