UK GAS-Prompt prices edge lower as supply outstrips demand
LONDON, Nov 6 (Reuters) - Prompt natural gas prices in Britain fell on Thursday morning as higher imports from the Netherlands contributed to an oversupplied system.
* Wind power to almost double to 6,000 MW on Thursday
LONDON Nov 6 (Reuters) - Prompt natural gas prices in Britain fell on Thursday morning as higher imports from the Netherlands contributed to an oversupplied system.true
Prices for within-day delivery were trading at 51.70 pence per therm at 0930 GMT, down 0.30 pence since their last settlement. Prices for delivery on Friday were down 0.65 pence at 51.45 pence per therm.
With supply flows at about 243.4 million cubic metres (mcm) per day on Thursday and demand expected to be about 239.8 mcm, the system was 3.6 mcm oversupplied, National Grid data showed.
Flows through the BBL pipeline, which transports gas from the Netherlands to Britain, were around 20 mcm/day on Thursday morning, up from levels around 15 mcm during the day on Wednesday, according to National Grid data.
Analysts at Thomson Reuters Point Carbon said that demand for gas from utilities could dip during the day because of higher output from Britain's wind power generators.
"Weather forecast suggests that wind will further pick up tomorrow and we might see a further drop in (demand from) CCGT (Combined Cycle Gas Turbine gas plants)," they said in a note.
Wind power output in Britain is set to soar on Thursday and Friday to more than 6,000 megawatts (MW), from less than 3,000 MW on Wednesday.
Further along the curve, gas for December delivery was 0.23 pence lower at 53.77 pence per therm.
Curve prices have been weaker since Russia and Ukraine reached a temporary agreement last week on gas supply.
Traders said the pact has reduced fears that European gas supplies from Russia would be disrupted this winter, reducing the risk premium previously priced into contracts.
The benchmark European Union carbon price was steady on Thursday morning, trading 0.02 euros lower at 6.63 euros a tonne on ICE Futures Europe. (Reporting by Susanna Twidale; Editing by David Goodman)
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- November 6, 2014
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