U.K. Natural Gas Advances as Demand Rises to Two-Week High
U.K. natural gas for next-day delivery rose for the first time in three days as demand climbed to the highest level in more than two weeks amid forecasts for freezing weather.
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 probably be 365 million cubic meters, the most since Jan. 24, National Grid Plc data show. The temperature in London tomorrow will fall to minus 2.5 Celsius (28 Fahrenheit) tomorrow, the least since Jan. 22, CustomWeather Inc. data on Bloomberg show.
Next-day gas climbed 1 percent to 67.8 pence a therm at 10:15 a.m. London time. Next-month gas added 0.5 percent to 65.85 pence a therm. That’s equivalent to $10.27 per million British thermal units and compares with $3.27 per million Btu of front-month U.S. gas.
The average temperature in the U.K. will be 1.8 degrees Celsius through Feb. 22, down from a prediction of 2.9 degrees 12 hours earlier, an ECMWF model supplied to Bloomberg by MetraWeather showed.
The delivery network will contain 317 million cubic meters of gas at 6 a.m. tomorrow, down from 352 million at the same time today, National Grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 111 million cubic meters a day versus a 10-day average of 106 million, Gassco AS data show. Pipeline imports from Belgium were at a rate of 6.8 million cubic meters a day, headed for the least since Jan. 31, Interconnector Ltd. data show.
Gas accounted for 34 percent of U.K. power production at 9:15 a.m. Coal generated 40 percent, nuclear 16 percent and wind 2.3 percent.
Wind output will peak at about 4,165 megawatts tomorrow, compared with a record 5,082 megawatts set Feb. 3, according to wind-power calculations on Bloomberg.
Electricity for the next working day fell for a fourth day, dropping 0.6 percent to 50.20 pounds a megawatt-hour, broker data show.
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