U.K. Natural Gas Jumps Most Since August as Statoil Cuts OutputMatthew Brown
U.K. natural gas for same-day delivery advanced the most in more than four months as Statoil ASA said production from Norway was reduced amid forecasts for freezing weather.
The within-day contract surged as much as 7.5 percent, the most since Aug. 20, according to broker data compiled by Bloomberg. Gas supply will be cut by 17 million cubic meters a day for an unspecified period, Statoil said on its website today. The low temperature in London will be below freezing from Jan. 14 to Jan. 21, according to CustomWeather Inc. data on Bloomberg.
Gas for today climbed 3.6 pence, or 5.8 percent, to 65.85 pence a therm at 4:42 p.m. London time. Next-month gas jumped 2.2 percent to 68.25 pence a therm. That’s equivalent to $10.98 per million British thermal units and compares with $3.32 per million Btu of front-month U.S. gas.
A restriction on injections into Centrica Plc’s Rough, the U.K.’s largest gas-storage facility, ended Jan. 4, according to a company website.
Imports from Norway were at a rate of 90 million cubic meters a day versus a 10-day average of 116 million, Gassco AS data show.
Demand in the 24 hours to 6 a.m. tomorrow will be 263 million cubic meters compared with a seasonal normal of 309 million, National Grid data show.
The low temperature in London today was 7 degrees Celsius (45 Fahrenheit) versus a five-year average of zero, CustomWeather data show.
Gas accounted for 32 percent of U.K. power production at 4:35 p.m., grid data show. Coal generated 41 percent, nuclear 17 percent and wind 3.5 percent.
Electricite de France SA will start its 605-megawatt Hartlepool-1 reactor in the U.K. on Jan. 10, two days earlier than planned, according to the company’s website. The unit halted Jan. 3.
Electricity for the next working day increased 0.5 percent to 47.80 pounds a megawatt-hour, broker data show.