U.K. Next-Day Natural Gas Snaps Three-Day Gain as Demand Slides

U.K. natural gas for next-day delivery snapped a three-day advance as demand declined, leaving a glut in the delivery network.

Day-ahead gas dropped as much as 0.5 percent, according to broker data compiled by Bloomberg. Demand in the 24 hours to 6 a.m. tomorrow will be 258 million cubic meters, down from 264 million yesterday. The low temperature in London will be 3 degrees Celsius (37 Fahrenheit) compared with a 10-year average of 2 degrees, CustomWeather Inc. data on Bloomberg show.

Gas for tomorrow slid 0.25 pence, or 0.4 percent, to 66.5 pence a therm at 4:44 p.m. London time after reaching 66.75 pence yesterday, the most since Dec. 13. Month-ahead gas fell 1.2 percent to 67.5 pence a therm. That’s equivalent to $10.83 per million British thermal units and compares with $3.22 per million Btu of front-month U.S. gas.

Demand was forecast at 258 million cubic meters in the day to 6 a.m. tomorrow, down from 265 million yesterday, National Grid Plc data show. The delivery network will contain 355 million cubic meters of gas at that time, compared with 345 million at the start of today, the data showed.

Same-day gas dropped 2.3 percent to 64.35 pence a therm after rising 5.8 percent yesterday, the most since October, broker data show.

Flows from Rough, the U.K.’s largest gas-storage facility, were as high as 44 million cubic meters a day, the most since Dec. 19, National Grid data show.

Imports from Belgium were scheduled at a rate of 2.2 million cubic meters a day, reversing after 11 days of exports, Interconnector Ltd. data show.

Gas accounted for 30 percent of U.K. power production at 4:25 p.m., grid data show. Coal generated 41 percent, nuclear 17 percent and wind 3.7 percent.

Electricite de France SA said it will start its 605-megawatt Hartlepool-1 nuclear reactor tomorrow, one day earlier than planned.

Electricity for tomorrow rose 2.1 percent to 48.80 pounds a megawatt-hour, broker data show.

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