U.K. Gas Advances Amid Forecasts for Coldest Weather in a Month
U.K. natural gas rose amid forecasts for the coldest weather in a month, boosting demand for the heating fuel.
The day-ahead contract climbed as much as 3.2 percent, according to broker data compiled by Bloomberg. The temperature in London will drop to minus 4 degrees Celsius on Jan. 14, the lowest since Dec. 13, CustomWeather Inc. data on Bloomberg show.
Gas for tomorrow advanced 2 pence, or 3 percent, to 67.75 pence a therm, the most since Dec. 12. Month-ahead gas added 0.9 percent to 68.3 pence a therm. That’s equivalent to $10.97 per million British thermal units and compares with $3.20 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 278 million cubic meters, up from 259 million yesterday, and the most since Dec. 23, National Grid Plc (NG/) data show. Flows are forecast at 262 million, the network operator said on its website.
Imports from Norway, the U.K.’s biggest source of imported gas, were cut by 18.8 million cubic meters a day yesterday for an unknown duration, Statoil ASA (STL) said on its website. Flows were at a rate of 89 million cubic meters a day, the least since Dec. 23, Gassco AS data show. Exports to Belgium will be 3.5 million cubic meters today, Interconnector Ltd. data show.
Withdrawals from Rough, the U.K.’s largest gas-storage facility, were at a rate of 44 million cubic meters a day, grid data show.
Gas accounted for 29 percent of U.K. power production at 8:45 a.m., grid data show. Coal generated 44 percent, nuclear 20 percent and wind 2.9 percent.
Electricite de France SA started its 605-megawatt Hartlepool-1 nuclear reactor at about 2 a.m. London time today, grid data show.
Electricity for next-day delivery jumped 5.5 percent to 51.50 pounds a megawatt-hour, broker data show.
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