U.K. Week-Ahead Gas Rises to 7-Year High on WeatherMatthew Brown
U.K. natural gas for next-week delivery rose to 101 pence a therm for the first time since March 2006 as forecasters predicted below-average temperatures while storage levels fell to a record.
Within-day, day-ahead and next-month gas also advanced, according to Marex Spectron Group Ltd. data compiled by Bloomberg. The average temperature in the U.K. next week will be 0.6 degrees Celsius (33 Fahrenheit), compared with a 10-year average of 8.2 degrees for the time of year, MetraWeather data using the ECMWF model show.
Britain’s weather next week will be “breezy and very cold for the time of year into the new week, but a lot of dry weather with a mixture of variable cloud, snow showers in northern parts especially, and sunny intervals,” the Met Office said today on its website.
Inventories at Rough, the U.K.’s largest gas-storage facility, dropped 85 gigawatt-hours to an all-time low of 2,684 gigawatt-hours today, National Grid Plc data show.
Week-ahead gas rose as much as 3.6 percent to 101 pence a therm and traded at 99 pence as of 4:53 p.m. London time, Spectron data show. Within-day gas added 1.4 percent to 98.1 pence a therm, while next-day gas rose 1.6 percent to 98 pence a therm.
Gas for April was little changed at 69.7 pence a therm. That’s equivalent to $10.57 per million British thermal units and compares with $3.95 per million Btu of front-month U.S. gas.
Flows from Norway, the U.K.’s biggest source of imported gas, were as high as 135 million cubic meters a day, the most since Feb. 27, Gassco AS data show.
Withdrawals from Rough were at 10.5 million cubic meters a day after flowing as fast as 28 million cubic meters a day yesterday, National Grid data show.
Production from ConocoPhillips’ J-Block gas fields, with a typical output of as much as 5 million cubic meters a day, halted because of a trip, the company said on its website. Production will resume tomorrow, it said.
The U.K. will receive a shipment of liquefied natural gas aboard the Tembek on March 29, according to ship data on Bloomberg. That would bring the total number of tankers to arrive in Britain to four, compared with two last month, according to data compiled by Bloomberg.
Nigeria LNG Ltd. boosted liquefied natural gas output from Africa’s largest export terminal to 75 percent of capacity after Royal Dutch Shell Plc, its biggest supplier, increased deliveries following a pipeline leak.
“The actual repairs are in progress and restoration of normal gas supply through the repaired pipeline is expected before the end of March,” Gloria Ita-Ikpeme, a Lagos-based spokeswoman for Nigeria LNG, said today by telephone.
Gas accounted for 33 percent of U.K. power production at 4:50 p.m., grid data show. Coal generated 39 percent, nuclear 16 percent and wind 7.5 percent.
Electricity for tomorrow slid 1 percent to 66.50 pounds a megawatt-hour, broker data show.