U.K. Natural Gas Advances as Temperature Drops to 10-Month Low
U.K. natural gas for same-day delivery rose for a second day as temperatures dropped to the lowest since February.
The within-day contract added as much as 2.3 percent, according to broker data compiled by Bloomberg. Today’s low temperature in London was minus 4 degrees Celsius (25 Fahrenheit), CustomWeather Inc. data on Bloomberg show. Demand in the 24 hours to 6 a.m. tomorrow will be 391 million cubic meters, the most since February, National Grid Plc (NG/) data show.
Gas for today climbed 0.8 percent to 67.4 pence a therm at 4:46 p.m. London time. Month-ahead gas fell for a fifth consecutive day, losing 0.1 percent to 66.9 pence a therm. That’s equivalent to $10.79 per million British thermal units and compares with $3.39 per million Btu of front-month U.S. gas.
Same-day gas pared its advance as the delivery system loosened with the nation’s pipelines forecast to hold 358 million cubic meters at 6 a.m. tomorrow, compared with 345 million at the same time today, National Grid data show.
Imports from Norway, the biggest external source of U.K. gas, were at a rate of 108 million cubic meters a day, down from a 10-day average of 117 million, Gassco AS data show.
Flows from Rough, the U.K.’s largest gas-storage facility, were at a rate of 43 million cubic meters a day after reaching 46 million on Dec. 6, the most since February, National Grid data show. Inventories were at 33,742 gigawatt-hours yesterday, compared with about 38,000 at the same time last year, grid data show.
Freezing temperatures will be replaced by wind and rain on Dec. 14, the Met Office said on its website. The low temperature in London will be 1 degree Celsius the day after tomorrow and 5 degrees on Dec. 15 and Dec. 16, CustomWeather data show.
Liquefied natural gas tanker Al Mayeda is scheduled to dock at Milford Haven in the U.K. on Dec. 19, according to ship data compiled by Bloomberg. The 261,157 cubic meter tanker, currently in the Mediterranean, changed destination, the data show. LNG tanker Ejnan is due in Zeebrugge Jan. 1, port data show.
Gas accounted for 36 percent of U.K. power production at 4:20 p.m., grid data show. Coal generated 42 percent, nuclear 14 percent and wind 1 percent.
Next-day electricity fell 6.4 percent to 56 pounds a megawatt-hour, after surging 11 percent yesterday, the most since Feb. 6, broker data show.
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