U.K. Natural Gas Advances as Temperatures Fall Below Freezing
U.K. natural gas for next-day delivery rose as forecasters predicted freezing weather, which may drive demand for the heating fuel.
Within-day, next-day and month-ahead gas also advanced, according to broker data compiled by Bloomberg. The average temperature in the U.K. fell to minus 1.6 degrees Celsius (29 Fahrenheit) at 6 a.m. London time this morning, and will reach minus 1.9 degrees on Feb. 22, MetraWeather data on Bloomberg using the ECMWF model show. The temperature will average 1 degree through Feb. 25, according to the data.
Day-ahead gas advanced 0.6 percent to 67.45 pence a therm at 9:20 a.m. Next-month gas added 0.1 percent to 66.15 pence. That’s equivalent to $10.25 per million British thermal units and compares with $3.18 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will probably be 316 million cubic meters, compared with a seasonal norm of 308 million and yesterday’s 325 million, National Grid Plc data show. The delivery network will contain 368 million cubic meters of gas at the end of the period, compared with 349 million at the beginning, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 112 million cubic meters a day versus a 10-day average of 111 million, Gassco AS data show.
Gas accounted for 36 percent of U.K. power production at 9 a.m., grid data show. Coal generated 41 percent, nuclear 18 percent and wind 0.3 percent.
Wind power output will peak at 3,147 megawatts tomorrow after reaching 911 megawatts today, Metra data show. It reached a record 5,082 megawatts Feb. 3, grid data show.
Electricity for tomorrow added 0.5 percent to 51 pounds a megawatt-hour, broker data show.
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