U.K. Natural Gas Advances as Temperatures Forecast Below ZeroMatthew Brown
U.K. natural gas for same-day delivery rose for the first time in four days as forecasters predicted a return to freezing temperatures in the south of England, potentially boosting demand for the fuel.
The contract climbed as much as 2.7 percent, according to broker data compiled by Bloomberg. The low temperature in London will be minus 1.2 degrees Celsius (30 Fahrenheit) tomorrow and zero on March 3, CustomWeather Inc. data show.
Gas for today climbed 1.8 percent to 70.4 pence a therm at 4:27 p.m. London time. Gas for April was up 0.1 percent at 67.40 pence a therm. That’s equivalent to $10.12 per million British thermal units and compares with $3.50 per million Btu of front-month U.S. gas.
The average U.K. temperature through March 7 will be 5.6 degrees Celsius, according to MetraWeather data using the GFS model. It will fall to 1.7 degrees at 6 a.m. March 3, Metra said in a 4:27 p.m. bulletin, lowering its forecast from 2.1 degrees 6 hours earlier.
Demand in the 24 hours to 6 a.m. tomorrow will be 320 million cubic meters, the least since Feb. 19, according to National Grid Plc data. The delivery network will contain 352 million cubic meters at the end of the period, little changed from the beginning, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were as low as 110 million cubic meters a day, the least since Feb. 24, Gassco AS data show. Imports from Belgium will be 19 million cubic meters today, the lowest level since Feb. 21, according to Interconnector Ltd.
Gas accounted for 37 percent of U.K. power production at 4:56 p.m. in London, grid data show. Coal generated 45 percent, nuclear 15 percent and wind 1.9 percent.
Electricite de France SA delayed the start of its 550-megawatt Dungeness B-21 reactor to March 3, the company said on its website.
Electricity for the next working day added 1.2 percent to 51.6 pounds a megawatt-hour, broker data show.