U.K. Natural Gas Declines as Flows Rise to Meet Demand Amid SnowMatthew Brown
U.K. natural gas for next working-day delivery fell for a second day as supplies rose to meet increased demand after snow swept much of England.
Same-day and month-ahead gas also declined, according to broker data compiled by Bloomberg. Total flows of gas were as high as 368 million cubic meters a day compared with a 10-day average of 324 million, National Grid Plc data show. Demand in the 24 hours to 6 a.m. was predicted at 357 million cubic meters, the most since Jan. 25, grid data show.
Tomorrow will be mostly dry in London and the southeast with a low temperature of 1 degree Celsius (34 Fahrenheit), the Met Office said on its website.
Gas for tomorrow dropped 1.5 percent to 66.9 pence a therm at 4:14 p.m. London time, broker data show. Month-ahead gas slid as much as 1.4 percent to 65 pence a therm, the least since Jan. 3. That’s equivalent to $10.18 per million British thermal units and compares with $3.24 per million Btu of front-month U.S. gas.
Prices for the fuel may rise as cold weather increases demand in the coming two weeks, Deutsche Bank AG said in a research note today. Average demand in the U.K. will be 258 million cubic meters a day in the next 14 days, compared with a seasonal norm of 225 million, and will reach 281 million in the three days starting Feb. 18, according to the bank.
Flows from Norway, the U.K.’s biggest source of gas imports, were at 110 million cubic meters a day versus a 10-day average of 106 million, Gassco AS data show. Dutch imports touched 38 million cubic meters a day, the most since Jan. 25, National Grid data show.
Pipeline imports from Belgium were at 19 million cubic meters a day, after reaching 25 million Feb. 9, the most since Jan. 21, Interconnector data show.
The average U.K. temperature through Feb. 17 will be 3.4 degrees Celsius, according to the GFS weather model supplied to Bloomberg by MetraWeather at 4:23 p.m. London time. The previous forecast was for 4.3 degrees.
Gas accounted for 37 percent of U.K. power production at 4:15 p.m., grid data show. Coal generated 38 percent, nuclear 15 percent and wind 4.5 percent.
Wind will produce as much as 1,564 megawatts of power tomorrow, according to Bloomberg calculations, after peaking at 4,040 megawatts today, grid data show.
Electricity for the next-working day fell 2.9 percent to 50.50 pounds a megawatt-hour, broker data show.