U.K. Day-Ahead Natural Gas Advances as Colder Weather Forecast
U.K. natural gas for next-day delivery advanced as forecasts for colder weather boosted demand for the heating fuel.
Day-ahead gas added 0.8 percent, according to broker data compiled by Bloomberg. The low temperature in London tomorrow will be minus 3 degrees Celsius (27 Fahenheit) and minus 4 on Jan. 24 after reaching 1 degree today, CustomWeather Inc. data show.
Gas for tomorrow climbed 0.55 pence a therm to 68.3 pence a therm at 8:42 a.m. London time. Next-month gas fell 0.3 percent to 66.45 pence a therm. That’s equivalent to $10.52 per million British thermal units and compares with $3.59 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 387 million cubic meters, the most since Jan. 16, National Grid Plc (NG/) data show. The delivery network will contain 341 million cubic meters of gas at the end of the period, down from 354 million at the beginning, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at a rate of 113 million cubic meters a day, compared with a 30-day average of 115 million, Gassco AS data show.
Imports from Belgium were at a rate of 15 million cubic meters a day, down from 24 million yesterday and the least since Jan. 16, Interconnector Ltd. data show.
Gas accounted for 42 percent of U.K. power production at 8:45 a.m., grid data show. Coal generated 37 percent, nuclear 18 percent and wind 1.4 percent.
Electricity for tomorrow rose 4 percent to 55.70 pounds a megawatt-hour, broker data show.
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