U.K. Natural Gas Rises a Third Day as System Tightens on Demand
U.K. natural gas for next-day delivery rose for a third day as the network operator predicted a tighter delivery system amid higher demand.
Within-day and month-ahead gas also advanced, according to broker data compiled by Bloomberg. Demand in the 24 hours to 6 a.m. tomorrow will be 308 million cubic meters, the most since Jan. 26, National Grid Plc (NG/) data show. The delivery network will contain 336 million cubic meters of gas at the end of the period versus 349 million at the beginning, grid data show.
Gas for tomorrow added as much as 2.6 percent to 69 pence a therm, the highest since Jan. 23, before trading at 68.3 pence at 10:25 a.m. London time. Next-month gas rose 0.7 percent to 66.9 pence a therm. That’s equivalent to $10.53 per million British thermal units and compares with $3.29 per million Btu of front-month U.S. gas.
Flows from Norway, the U.K.’s biggest source of imported gas, were at a rate of 105 million cubic meters a day versus a 10-day average of 107 million, Gassco AS data show. Imports from the Netherlands were at a rate of 25 million cubic meters a day after falling to 19 million, the least since Nov. 15, National Grid data show.
Gas accounted for 24 percent of U.K. power production at 9:30 a.m., grid data show. Coal generated 42 percent, nuclear 17 percent and wind 11 percent.
U.K. power output from wind turbines reached a record 5,082 megawatts yesterday, and was at 4,644 megawatts today, grid data show. Wind will generate 4,997 megawatts of power tomorrow, little changed from 4,998 megawatts tomorrow, the data show.
Electricity for the next working day gained 2.3 percent to 48.10 pounds a megawatt-hour, broker data show.
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