March 13 (Bloomberg) -- U.K. day-ahead natural gas prices dropped from their highest in more than a year as demand waned on milder weather.
Gas for tomorrow fell 9.1 percent to 87 pence a therm at 4:44 p.m. London time, according to data from brokers compiled by Bloomberg. U.K. temperatures will average 3.8 degrees Celsius (39 Fahrenheit) through March 27, compared with an earlier forecast for 3.3 degrees, according to MetraWeather data using the GFS model compiled by Bloomberg at 4:39 p.m.
Supply from mainland Europe via Interconnector (U.K.) Ltd.’s pipeline from Belgium dropped to 54 million cubic meters a day, from as much as 69 million earlier today, National Grid Plc data show. Demand in the 24 hours through 6 a.m. tomorrow will be 338 million cubic meters, down from 363 million yesterday, according to the grid. The nation’s pipelines will contain 366 million cubic meters at that time, up from 353 at the start of today.
April U.K. gas dropped 0.7 percent to 68.8 pence as volumes rose to a record 18,090 contracts on the ICE Futures Europe exchange. The contract earlier today reached a record 70.25 pence. That’s equivalent to $10.48 a million British thermal units. That compares with $3.689 a million Btu in the U.S.
Production from the J-Block in the North Sea, which has a typical production rate of as much as 5 million cubic meters a day, is expected to resume by 6 a.m. tomorrow after an unplanned halt, ConocoPhillips said on its website. The South Morecambe field in the Irish Sea, with production capacity of 6.6 million cubic meters a day, will halt for planned maintenance for 20 hours from 3 a.m. tomorrow, Centrica Plc said.
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