U.K. Next-Day Natural Gas Rises as Temperatures Forecast to Drop
U.K. natural gas for next-day delivery advanced as freezing weather was forecast for the following four days.
Month-ahead gas also climbed, according to data compiled by Bloomberg. Average U.K. temperatures will fall to 0.2 degree Celsius tomorrow (32 Fahrenheit) and minus 0.6 degree on Feb. 22 from 2.3 degrees today, according to MetraWeather data using the ECMWF model.
Gas for tomorrow added 0.7 percent to 68 pence a therm at 5 p.m. London time. Next-month gas rose 0.5 percent to 66.3 pence a therm. That’s equivalent to $10.14 per million British thermal units and compares with $3.28 per million Btu of front-month U.S. gas.
“It will take some time for the cold air to filter across the whole of the U.K. but by Friday, much of the U.K. will struggle to see daytime temperatures above around 3 degrees,” the Met Office said on its website. “Brisk winds across England and Wales will make it feel much colder.”
Demand in the 24 hours to 6 a.m. tomorrow will be 331 million cubic meters, the most since Feb. 13 and above the seasonal normal of 308 million, National Grid Plc data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 116 million cubic meters a day compared with a 10- day average of 112 million, Gassco AS data show. Imports from Belgium were at 10 million cubic meters a day.
Gas accounted for 31 percent of U.K. power production at 4:55 p.m., grid data show. Coal generated 40 percent, nuclear 17 percent and wind 5.9 percent.
Wind power output will peak at 2,599 megawatts tomorrow after reaching 3,046 megawatts today, according to Bloomberg calculations. It touched a record 5,082 megawatts Feb. 3, grid data show.
Electricity for tomorrow jumped 2.6 percent to 51.80 pounds a megawatt-hour, broker data show.
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