U.K. Natural Gas Advances as Temperatures Forecast Below Zero
U.K. natural gas for same-day delivery rose for the first time in four days as forecasters predicted a return to freezing temperatures in the south of England, potentially boosting demand for the fuel.
The contract climbed as much as 2.3 percent, according to broker data compiled by Bloomberg. The low temperature in London will be minus 1.5 degrees Celsius (29 Fahrenheit) tomorrow and zero March 4, CustomWeather Inc. data show.
Gas for tomorrow climbed 0.7 percent to 70.5 pence a therm at 10:40 a.m. London time. Gas for April was 0.2 percent lower at 67.4 pence a therm. That’s equivalent to $10.23 per million British thermal units and compares with $3.50 per million Btu of front-month U.S. gas.
The average U.K. temperature through March 7 will be 4.7 degrees Celsius, according to MetraWeather data using the ECMWF model. It will fall to 0.1 degree at 6 a.m. March 3, Metra said in a 6:55 a.m. bulletin, lowering its forecast from 0.5 degrees at 7 p.m. yesterday.
Demand in the 24 hours to 6 a.m. tomorrow will be 315 million cubic meters, the least since Feb. 19, according to National Grid Plc (NG/) data. The delivery network will contain 356 million cubic meters at the end of the period, up from 351 million at the beginning, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were as low as 110 million cubic meters a day, the least since Feb. 24, Gassco AS data show. Belgian imports were headed for 19 million cubic meters, the smallest since Feb. 21, according to Interconnector Ltd.
Gas accounted for 34 percent of U.K. power production at 10:25 a.m. in London, grid data show. Coal generated 46 percent, nuclear 15 percent and wind 2.6 percent.
Electricite de France SA will halt its 550-megawatt Dungeness B-21 reactor for seven days from tomorrow, the company said on its website.
Electricity for the next working day added 1.2 percent to 51.6 pounds a megawatt-hour, broker data show.
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