Day-ahead price rises as power demand prompts undersupply

18 Jun, 2019

* Day-ahead gas prices rose 0.2 pence to 31.25 pence per therm by 0750 GMT.

* Within-day gas prices had yet to trade.

* The UK gas system is expected to be 31.4 million cubic metres (mcm) undersupplied with demand forecast at 226.1 mcm and supplies seen at 194.7 mcm, according to National Grid data.

* The demand was 65 mcm higher than the seasonal norm in part due to temperatures remaining below average and because of  higher demand for gas for power.

* Peak wind generation is expected to be 4.4 gigawatts (GW) on Tuesday and 3.3 GW on Wednesday compared to 7.6 GW on Monday and a total metred capacity of 12 GW.

* Residential gas demand is expected to be stable at 76 mcm but gas for power demand is seen 12 mcm higher at 67 mcm.

* Exports of gas along the Interconnector UK pipeline remained high at 56 mcm as an outage at Belgium's Zeepipe prompted a reshuffle of flows between Norway, Britain and the Continent.

* Liquefied natural gas sendout remained stable and relatively low at 14 mcm. Two Qatari cargoes are expected at the South Hook terminal this week.

* The day-ahead gas price at the Dutch TTF hub fell 0.12 euro to 11.22 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contracts fell 0.07 euro to 24.95 euros per tonne.

Copyright Reuters, 2019

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