Bloomberg News

U.K. Day-Ahead Gas Rises a Fourth Day on Cooler Weather Forecast

January 08, 2013

U.K. natural gas for next-day delivery advanced for a fourth day as predictions for colder weather bolstered demand for the heating fuel.

Day-ahead gas climbed 0.8 percent, according to broker data compiled by Bloomberg. The low temperature in London will be 1 degree Celsius (34 Fahrenheit) tomorrow and zero on Jan. 10, compared with 8 degrees today, CustomWeather Inc. data on Bloomberg show.

Gas for tomorrow added 0.5 pence to 66.25 pence a therm at 8:30 a.m. London time after reaching 66.75 pence yesterday, the most since Dec. 13. Month-ahead gas fell 0.7 percent to 68.04 pence a therm. That’s equivalent to $10.94 per million British thermal units and compares with $3.24 per million Btu of front- month U.S. gas.

Same-day gas was little changed as flows were predicted by the network operator to increase to 281 million cubic meters in the 24 hours to 6 a.m. tomorrow from about 271 million in the previous period. The delivery network will contain 357 million cubic meters of gas at the end of the period compared with 345 million at the beginning, National Grid Plc (NG/) data show.

Gas for today fell 0.2 percent to 65.75 pence a therm, broker data show.

Flows from Rough, the U.K.’s largest gas-storage facility, were at a pace of 36 million cubic meters a day after reaching 44 million yesterday, the most since Dec. 19, National Grid data show.

Imports from Belgium were at a rate of 4.4 million cubic meters a day, reversing after 11 days of exports, Interconnector Ltd. data show.

Gas accounted for 23 percent of U.K. power production at 8:40 a.m., grid data show. Coal generated 45 percent, nuclear 20 percent and wind 6.5 percent.

Electricite de France SA said it will start its 605- megawatt Hartlepool-1 nuclear reactor tomorrow, one day earlier than planned.

Electricity for tomorrow rose 2.1 percent to 48.80 pounds a megawatt-hour, broker data show.

To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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