U.K. Natural Gas Rises a Second Day Amid Colder Weather Forecast
U.K. natural gas for next-day delivery advanced for a second day amid predictions for freezing weather over the coming two weeks, boosting demand for the heating fuel.
Day-ahead gas climbed as much as 0.6 percent, according to broker data compiled by Bloomberg. The low temperature in London will be less than zero degrees Celsius (32 degrees Fahrenheit) every day through Jan. 24, CustomWeather Inc. data on Bloomberg show. Demand in the 24 hours to 6 a.m. tomorrow will be 319 million cubic meters, the most since Dec. 23, according to a National Grid Plc (NG/) forecast.
Gas for tomorrow rose 0.3 pence, or 0.5 percent, to 67.4 pence a therm at 9:32 a.m. London time. Month-ahead gas fell 0.7 percent to 67.4 pence a therm. That’s equivalent to $10.80 per million British thermal units and compares with $3.13 per million Btu of front-month U.S. gas.
Norwegian gas supplies will be reduced by 9.5 million cubic meters today on top of a 7.6 million cubic meter reduction announced yesterday, Statoil ASA (STL) said on its website.
Imports from Norway, the U.K.’s biggest external source of gas, rebounded to a rate of 122 million cubic meters a day, the most since Jan. 3, from as low as 69 million yesterday, Gassco AS data show.
The delivery network was predicted to contain 355 million cubic meters of gas at 6 a.m. tomorrow, up from 348 million 24 hours earlier, grid data show. Demand will be 319 million cubic meters in the period, compared with a seasonal norm of 309 million. It’s the first time forecast demand is expected to be above the seasonal average since Dec. 19.
Gas accounted for 31 percent of U.K. power production at 9:25 a.m., grid data show. Coal generated 43 percent, nuclear 19 percent and wind 0.5 percent.
The 580-megawatt unit 4 at the Longannet coal-fired power station had an unplanned halt at about 1 a.m. due to a boiler fault, grid data show.
Electricity for tomorrow fell 2.6 percent to 50.15 pounds a megawatt-hour, broker data show.
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