U.K. Natural Gas Drops Most in 10 Weeks as Norway Supplies Surge
U.K. natural gas for same-day delivery dropped the most in almost 10 weeks after supplies from Norway surged and temperatures remained above normal for the season.
The within-day contract fell as much as 7.3 percent to 54.95 pence a therm, the biggest drop since April 15, according to broker data compiled by Bloomberg. It was at 55.30 pence at 10:20 a.m. in London, equivalent to $8.56 per million British thermal units.
Gas flows into Britain from Norway rose to as high as 98 million cubic meters a day today before dropping to 62 million, the average for the past 30 days, according to data from Gassco AS, Norway’s pipeline operator. The Norpipe from Norway into Germany is shut for three weeks starting June 3, cutting flows into the Emden gas terminal.
Day-ahead U.K. gas has averaged 70 pence this year, 19 percent more than in the same period last year, the broker data show.
Demand will be 175 million cubic meters today, according to a forecast by National Grid Plc (NG/) at 10:02 a.m. That would be the lowest since Sept. 29.
The nation’s pipelines will contain 375 million cubic meters at 6 a.m. tomorrow, compared with 340 million today, the network manager said.
The average U.K. temperature for the balance of day will be 17.4 degrees Celsius (63 Fahrenheit), compared with a seasonal normal of 14.4 degrees, according to MetraWeather data using the ECMWF model on Bloomberg.
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