UK GAS-Prices rise as wind power output, temperatures slip

19 Dec, 2018

* Day-ahead gas price up 0.60 pence at 65.20 pence per therm by 0904 GMT.

* Within-day gas price up 0.60 pence at 65.00p/therm.

* Traders cited expectations of strong demand from power plants as output from the country's wind farms slipped.

* Traders also said colder temperatures than previously forecast had buoyed demand.

* Peak wind power generation is forecast at 7.4 gigawatts on Wednesday, down from highs of 11.5 GW the previous day, National Grid data showed.

* Refinitiv analysts increased their expectations of gas for power demand by 4 million cubic metres due to lower wind speeds, they said in a daily research note.

* Gas system almost balanced with demand forecast at 274.9 mcm/day and flows at 281.8 mcm/day, National Grid data showed.

* Average temperatures in Britain were forecast at 6.6 degrees Celsius, Eikon Refinitiv data showed, a drop of 2.1 degrees compared with the previous forecast.

* "After a warm spell over the next few days we expect the temperatures adjusting down closer to normal mid next week," the analysts wrote.

* Around 80 percent of Britain's homes are heated using natural gas, meaning temperatures can have a big impact on demand.

Copyright Reuters, 2018
 

 

 

 

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