U.K. Natural Gas Falls as Warmer-Than-Average Weather ForecastMatthew Brown
U.K. natural gas for same-day delivery declined as temperatures rose, cutting demand for the heating fuel.
Day-ahead and next-month gas also dropped, according to broker data compiled by Bloomberg. The average temperature in London today was 9 degrees Celsius (48 Fahrenheit), up from 7 degrees yesterday and 1.5 degrees on Feb. 13, CustomWeather Inc. data on Bloomberg shows.
Gas for today fell 2.7 percent to 67 pence a therm at 4:10 p.m. London time. The month-ahead contract declined 1.5 percent to 66.2 pence a therm. That’s equivalent to $10.28 per million British thermal units and compares with $3.18 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 304 million cubic meters, the least since Feb. 4, National Grid Plc data show. The delivery network will contain 353 million cubic meters of gas at the end of the period, up from 348 million at the beginning, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 110 million cubic meters a day versus a 10-day average of 105 million, Gassco AS data show. The two countries plan to build a new link by 2020, Norwegian Oil and Energy Minister Ola Borten Moe said in Oslo today.
Gas accounted for 29 percent of U.K. power production at 4:05 p.m., grid data show. Coal generated 47 percent, nuclear 16 percent and wind 0.9 percent.
Wind energy output will peak at 2,781 megawatts today and 828 megawatts tomorrow, according to Bloomberg calculations. It reached a record 5,082 megawatts Feb. 3, grid data show.
Electricity for the next working day rose 0.3 percent to 49.65 pounds a megawatt-hour, broker data show.