U.K. Natural Gas Advances as Demand Rises to Three-Week HighMatthew Brown
U.K. natural gas for next-day delivery rose for the first time in three days as demand climbed to the highest level in almost three weeks amid forecasts for freezing weather.
Within-day and month-ahead contracts also advanced, according to broker data compiled by Bloomberg. Demand in the 24 hours to 6 a.m. tomorrow will probably be 367 million cubic meters, the most since Jan. 24, National Grid Plc data show. The temperature in London tomorrow will fall to minus 3.2 Celsius (26 Fahrenheit) tomorrow, the least since Jan. 22, CustomWeather Inc. data on Bloomberg show.
Next-day gas climbed 3.2 percent to 69.3 pence a therm at 4:57 p.m. London time, the biggest gain since Jan. 17. The next-month contract added 0.5 percent to 65.85 pence a therm. That’s equivalent to $10.31 per million British thermal units and compares with $3.25 per million Btu for front-month U.S. gas.
The average temperature in the U.K. will be 5.8 degrees Celsius through Feb. 26, up from a prediction of 4.1 degrees six hours earlier, a GFS model supplied to Bloomberg by MetraWeather showed.
The delivery network will contain 353 million cubic meters of gas at 6 a.m. tomorrow, little changed from the same time today, National Grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 106 million cubic meters a day in line with the 10-day average, Gassco AS data show. Pipeline imports from Belgium were scheduled at 6.7 million cubic meters a day, the least since Jan. 31, Interconnector Ltd. data show.
The Central Area Transmission System Riser platform will be unavailable from Feb. 21 to Feb. 23, according to the group’s website. CATS transports gas from the North Sea for processing at Teesside in northeast England and has a capacity of 48 million cubic meters a day, according to the website.
Gas accounted for 41 percent of U.K. power production at 4:45 p.m. Coal generated 38 percent, nuclear 15 percent and wind 1.4 percent.
Wind output will peak at about 4,009 megawatts tomorrow, compared with a record 5,082 megawatts set Feb. 3, according to wind-power calculations on Bloomberg.
Electricity for the next working day rose 2 percent to 51.50 pounds a megawatt-hour, broker data show.