U.K. Same-Day Gas Falls to Eight-Month Low as Rough Site Halts
U.K. natural gas for same-day delivery fell to the lowest price in eight months as Centrica Plc (CNA)’s Rough gas storage site, the U.K.’s largest, had an unplanned halt.
The contract fell as much as 4.7 percent to 59.5 pence a therm, the lowest since Oct. 1, and was at 59.7 pence at 5:20 p.m. London time, according to broker data compiled by Bloomberg. Rough has been unavailable for injections since 3 p.m., Centrica said on its website, without giving a reason or saying when it will return.
Gas for the six months from October, the winter contract, declined for the sixth time in seven days as inventories rose toward the average, damping concern they won’t be full when the heating season starts.
The contract fell 0.8 percent to 70.45 pence a therm, the least since May 15, according to broker data compiled by Bloomberg. It hasn’t risen since May 28. U.K. gas stores added 81 million cubic meters last week, the most in 10 years, data from Gas Infrastructure Europe compiled by Bloomberg Industries show. They remain at the lowest level in at least six years.
Month-ahead gas slid 1.3 percent to 62.85 pence a therm, the least since Oct. 15. That’s equivalent to $9.80 per million British thermal units and compares with $3.86 per million Btu for the equivalent U.S. contract. Gas tends to be cheaper in the spring and summer than in fall and winter as demand for the heating fuel varies.
Rough injected 25 million cubic meters yesterday to take the total to 1.27 billion cubic meters, compared with a 10-year average of about 2 billion, according to National Grid data compiled by Bloomberg. That compares with a record-low just below zero on April 13 and a 10-year mean of 1.9 billion for that date.
The average U.K. temperature for the balance of today is predicted at 16.2 Celsius compared with a seasonal normal of 11 Celsius, according to MetraWeather data using the ECMWF model. The mean through June 12 will be 13.8 Celsius versus a normal of 15 degrees.
Demand in the 24 hours to 6 a.m. tomorrow is predicted to be 227 million cubic meters, up from a seasonal average of 212 million, National Grid data show. Exports to Belgium were at a rate of 40.9 million cubic meters a day, the most since August, data from pipeline operator Interconnector Ltd. show.
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