U.K. Natural Gas Declines as System Flows Climb to 11-Month High
U.K. natural gas for the next working day fell, snapping a three-day gain, as increased demand was met with the highest flows in almost a year.
Day-ahead gas dropped 2.6 percent, according to broker data compiled by Bloomberg. Total flows were at a rate of 423 million cubic meters a day after reaching 439 million yesterday, the most since February, National Grid Plc (NG/) data show. Demand in the 24 hours to 6 a.m. tomorrow will be 390 million cubic meters compared with a seasonal normal of 306 million, grid data show.
Gas for Jan. 21 fell 1.85 pence to 70.5 pence a therm at 8:40 a.m. London time, after reaching 74 pence yesterday, the most since February. Next-month gas dropped 1.3 percent to 67.4 pence a therm. That’s equivalent to $10.74 per million British thermal units and compares with $3.51 per million Btu of front- month U.S. gas.
Imports from Belgium were at a rate of 52 million cubic meters a day, the most since January 2010, Interconnector Ltd. data show. Flows from Norway, the U.K.’s biggest source of imported gas, were at a rate of 134 million cubic meters a day, after reaching a 12-month high of 138 million Jan. 16, Gassco AS data show.
The low temperature in London today was minus 2 degrees Celsius (28 Fahrenheit) after falling to minus 6 yesterday, according to CustomWeather Inc. data on Bloomberg. It will reach minus 6 on Jan. 21.
The delivery system will contain 408 million cubic meters of gas at 6 a.m. tomorrow, up from 357 million 24 hours earlier, grid data show.
Gas accounted for 30 percent of U.K. power production at 8:55 a.m., grid data show. Coal generated 43 percent, nuclear 18 percent and wind 7.1 percent.
Electricity for the next working day was unchanged at 53.75 pounds a megawatt-hour, broker data show.
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