British within-day gas price fell on Tuesday due to expected strong power output from wind turbines and increasing temperatures, and as more liquefied natural gas (LNG) is scheduled to arrive until the end of the week.
* Within-day gas fell by 0.30 pence to 64.60 pence per therm at 0855 GMT
* Strong electricity production from wind turbines and an expected rise in temperatures from Wednesday, in addition to LNG supplies that keep arriving, were behind the fall in prompt prices, a trader said.
* Average daily temperatures in Britain are expected to be 4.3 degrees Celsius on Tuesday, rising to 10.1 C on Wednesday.
* Peak wind generation is forecast at 10.7 gigawatt (GW) on Tuesday and expected to rise to 11.3 GW on Wednesday. The total metered capacity of Britain's wind turbines is around 12.1 GW
* Strong power generation from wind turbines typically reduces demand from gas-to-power plants
* Britain received two LNG vessels since Saturday and expects three more by the end of the week
* Prices fell despite a reduction in piped gas flows from Norway, which caused a small shortfall in the system's supply balance
* Norwegian gas flows to Britain fell to 99 million cubic metres (mcm) per day from 117 mcm/day on Monday, as gas flows through the Vesterled pipeline were halved
* Consequently, the system is slightly undersupplied with demand forecast at 301.4 mcm/day and flows at 294.7 mcm/day, National Grid data shows
* December gas contract rose by 0.18 pence to 66.50 p/therm
* Day-ahead Dutch gas at the TTF hub fell by 0.05 euro to 24.50 euros per megawatt hour
* The benchmark Dec-18 EU carbon contract fell by 0.21 euro to 19.62 euros a tonne
Comments
Comments are closed.