U.K. Gas Advances as Demand Climbs Amid Cooler Weather Forecasts
U.K. natural gas for next-working day delivery rose for a fourth day as demand increased amid predictions of cooler weather.
The contract climbed as much as 1.8 percent, according to broker data compiled by Bloomberg. Demand in the 24 hours to 6 a.m. tomorrow will be 272 million cubic meters, the most since Nov. 18, National Grid Plc (NG/) data show. Temperatures in London will fall as low as minus 2 degrees Celsius (36 Fahrenheit) on Dec. 1 and minus 3 degrees on Dec. 3, down from 6 degrees today, according to CustomWeather Inc. data.
Day-ahead gas climbed 0.6 pence, or 0.8 percent, to 67.1 pence a therm, after reaching 67.75 pence, the most since Oct. 29. Next-month gas added 0.9 percent to 68.65 pence a therm. That’s equivalent to $11 per million British thermal units and compares with $3.90 per million Btu of front-month U.S. gas.
Imports rose to meet the higher demand, with Norwegian flows reaching 117 million cubic meters a day, the most since Nov. 19, according to Gassco AS data. Imports from Belgium were at a rate of 14 million cubic meters a day, also a four-day high.
The delivery network will contain 332 million cubic meters of gas at 6 a.m. tomorrow, down from 343 million at the start of today, National Grid data show.
Gas accounted for 36 percent of U.K. power production at 4:40 p.m., grid data show. Coal also generated 36 percent, nuclear 13 percent and wind 4.2 percent.
Electricity for the next working day dropped 2.4 percent to 50 pounds a megawatt-hour, broker data show. Month-ahead power jumped 1.2 percent to 51.10 pounds a megawatt-hour.
EON AG halted its 1,940-megawatt Kingsnorth coal-fed power plant in southeast England at about 9:30 p.m. yesterday, according to the company’s website. All four 485-megawatt units are scheduled to start on Nov. 26, EON said. The utility will close Kingsnorth once it has used its final 300 hours under the European Union’s Large Combustion Plant Directive because the plant does not meet the required environmental standards.
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