August 14, 2019 / 8:01 AM / in a year

UK GAS-Prices slump in oversupplied market

LONDON, Aug 14 (Reuters) - British wholesale gas prices fell across the board on Wednesday, pressured by oversupply coupled with low with summer demand levels, which broke the market’s week-long growth trend.

* Within-day gas price fell 3 pence, or almost 10%, to 28.00 pence per therm by 0740 GMT.

* Day-ahead gas price fell 1.75 pence to 28.50 pence per therm.

* The British gas system was 20 million cubic metres (mcm) oversupplied, with demand seen at 151.1 mcm and supplies forecast at 171.0 mcm, National Grid data showed.

* Flows along the Langeled pipeline from Norway were 10 mcm higher at 42 mcm, although they were nominated even higher at 50 mcm.

* Production from the UK Continental Shelf also increased, adding 4 mcm to supplies.

* Sendout rates from liquefied natural gas (LNG) terminals remained stable at 9 mcm although two tankers were due to arrive this month, including one on Wednesday.

* The sharp price falls amid healthy gas flows reflects fears that gas storage facilities across Europe are close to full after a year of unrelenting supplies boosted by a record influx of LNG imports.

* The Dutch Bergermeer site, the largest commercial storage site in the country, will be in outage for most of September, according to data from its operator.

* “All the long range storage in the Netherlands is fullish,” said one market participant, adding that another Dutch storage site had been withdrawing gas over the weekend when prices were cheaper and storing it during the week days.

* “This also gives the Netherlands a bit more injectability over the weekend which stops prices collapsing,” he said.

* The Dutch month-ahead gas contract, a benchmark for LNG prices as well as European gas, was down 0.3 euro to 11.45 euros per megawatt hour.

* Peak wind power generation is expected to rise on Wednesday and Thursday, which tends to reduce gas for power demand.

* Wind generation is expected at 5 gigawatts (GW) on Wednesday compared to 3.5 GW on Tuesday, rising to 8.4 GW on Thursday, Elexon data showed.

* The British September contract fell 1.5 pence to 32.40 pence per therm.

* Day-ahead gas price at the Dutch TTF hub fell 0.33 euro to 10.40 euros per megawatt hour.

* The benchmark Dec-19 EU carbon contract fell 0.22 euro to 26.88 euros per tonne. (Reporting by Sabina Zawadzki. Editing by Jane Merriman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below