U.K. Natural Gas Declines a Second Day Amid Rising TemperaturesMatthew Brown
U.K. natural gas prices fell for a second day as warmer-than-average weather reduced demand for the heating fuel.
Within-day, day-ahead and next-month contracts all declined, according to broker data compiled by Bloomberg. The low temperature in London today was 9 degrees Celsius (50 Fahrenheit) compared with a 10-year average of 2 degrees, CustomWeather Inc. data on Bloomberg show.
Gas for today dropped 2.2 percent to 65.3 pence a therm at 4:13 p.m. London time. Month-ahead gas fell 1 percent to 66.35 pence a therm. That’s equivalent to $10.45 per million British thermal units and compares with $3.26 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 277 million cubic meters, down from 306 million yesterday and a seasonal normal of 309 million, National Grid Plc data show. System flows were at a rate of 292 million cubic meters a day versus a 10-day average of 353 million, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 103 million cubic meters a day, versus a 10-day average of 106 million, Gassco AS data show. Belgian pipeline imports were at 6.6 million, heading for the least since Jan. 8, Interconnector Ltd. data show.
Norway expects gas production to be reduced by about 15 percent in the four months from April because of maintenance at its offshore fields. Output will be cut by 47 million cubic meters a day from April 1 through Aug. 2, pipeline operator Gassco AS said yesterday.
Gas accounted for 22 percent of U.K. power production at 4:10 p.m., grid data show. Coal generated 45 percent, nuclear 18 percent and wind 10.1 percent.
U.K. wind-power generation climbed to a record 4,985 megawatts at 12:15 a.m. today, grid data show.
Day-ahead electricity slid 2.9 percent to 43.10 pounds a megawatt-hour, the least since Dec. 31, broker data show.