U.K. Within-Day Natural Gas Jumps to One-Year High on Weather

U.K. natural gas for same-day delivery jumped to the highest level in more than a year as colder-than-average weather boosted demand, tightening the delivery network. Power also rose to a one-year high.

Within-day gas surged 12 percent, according to broker data compiled by Bloomberg. Demand in the 24 hours to 6 a.m. tomorrow will be 361 million cubic meters after reaching 374 million on Feb. 22, the most since Jan. 24, National Grid Plc data show.

Gas for today added as much as 8.5 pence to 82 pence, the highest since Feb. 10, 2012, and was at 80 pence at 4:17 p.m. London time. Month-ahead gas climbed 1.5 percent to 68.05 pence a therm. That’s equivalent to $10.28 per million British thermal units and compares with $3.38 per million Btu of front-month U.S. gas.

The average temperature in the U.K. through tomorrow will be 3.4 degrees Celsius (38 Fahrenheit), compared with a seasonal normal of 5.2 degrees, according to Metraweather data using the GFS model on Bloomberg.

The delivery network will contain 336 million cubic meters of gas at 6 a.m. tomorrow, down from 347 million 24 hours earlier, National Grid Plc data show. So-called closing linepack was earlier predicted at 321 million cubic meters.

Flows from Norway, the U.K.’s biggest source of imported gas, were at 125 million cubic meters a day versus a 10-day average of 113 million, Gassco AS data show. Belgian pipeline imports were headed for 29 million cubic meters a day, the most since Jan. 21, Interconnector Ltd. data show.

Gas Power

ConocoPhillips said its Theddlethorpe receiving terminal in the northeast of England had an unplanned outage that it expects to end later today. Typical production at the site is 9.5 million cubic meters to 10.7 million, according to Conoco.

Britain is set to get its first liquefied natural gas cargo from Algeria since June, ship tracking data showed. The Cheikh El Mokrani will arrive at the Isle of Grain LNG terminal east of London on March 1, the data show.

The Hammerfest LNG facility will be shut for an unknown duration after a gas leak over the weekend, broadcaster NRK said, citing Ola Anders Skauby, a Statoil ASA spokesman. LNG output has already been shut for a few weeks for upgrades.

Gas accounted for 36 percent of U.K. power production at 4 p.m., grid data show. Coal generated 40 percent, nuclear 16 percent and wind 3.5 percent.

Electricity for the next working day rose as much as 9.3 percent to 59 pounds a megawatt-hour, the most since Feb. 8, 2012, before trading at 58.50 pounds, broker data show.

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