U.K. Gas Rises Amid Forecasts of Continued Sub-Freezing Weather
U.K. natural gas for February advanced for the first time in three days amid freezing weather and a forecast for further declines in temperatures.
Month-ahead gas rose 1.1 percent, according to broker data compiled by Bloomberg. The low temperature in London will be minus 6 degrees Celsius (21 Fahrenheit) tomorrow and minus 9 degrees on Jan. 20, CustomWeather Inc. data on Bloomberg show. It fell to minus 3 degrees today, compared with a 10-year average of plus 3 degrees.
Next-month gas added 0.75 pence to 67.5 pence a therm as of 9 a.m. London time. That’s equivalent to $10.81 to million British thermal units and compares with $3.41 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will probably be 385 million cubic meters, up from 367 million yesterday and a seasonal norm of 309 million, National Grid Plc (NG/) data show.
Total flows were at a rate of 393 million cubic meters a day with the delivery system predicted to contain 374 million cubic meters of gas at the end of the period, up from 351 million at the beginning, grid data show.
Flows from Norway, the U.K.’s biggest source of imported gas, were at a rate of 131 million cubic meters a day after touching 138 million, the most since Bloomberg started compiling the data in Jan. 2012.
Exports to Belgium were at a rate of 16 million cubic meters a day, Interconnector Ltd. data show.
The St. Fergus receiving terminal in Scotland had an unplanned capacity reduction of 10 million cubic meters a day yesterday for an unknown duration, Total SA said on its website. Statoil ASA (STL) cut output by 17 million cubic meters a day for 24 hours from today for planned maintenance.
Gas accounted for 36 percent of U.K. power production at 9:20 a.m., grid data show. Coal generated 43 percent, nuclear 17 percent and wind 1.5 percent.
Electricite de France SA’s 550-megawatt Dungeness B-22 nuclear reactor started yesterday after halting on Jan. 12, the company said on its website today.
Electricity for tomorrow rose 1 percent to 54.45 pounds a megawatt-hour, broker data show.
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