Bloomberg News

U.K. Natural Gas Advances as Temperature Drops to 11-Month Low

January 22, 2013

U.K. natural gas for within-day delivery rose as temperatures dropped to the lowest level in more than 11 months, boosting demand for the heating fuel.

Same-day gas climbed as much as 1.6 percent, according to broker data compiled by Bloomberg. The low temperature in London was minus 7 degrees Celsius (19 Fahrenheit) today, the least since Feb. 12, CustomWeather Inc. data on Bloomberg show. Demand in the 24 hours to 6 a.m. tomorrow was probably be 386 million cubic meters, the most since Jan. 16 and above the seasonal normal of 309 million, National Grid Plc (NG/) data show.

Gas for today climbed 1.2 percent, or 0.8 pence, to 67.75 pence a therm at 9:29 p.m. London time. Month-ahead gas added 0.2 percent to 66.35 pence a therm. That’s equivalent to $10.50 per million British thermal units and compares with $3.638 per million Btu of front-month U.S. gas.

The delivery network was predicted to end the period with 340 million cubic meters of gas, down from 354 million, National Grid data show.

Flows from Norway, the U.K.’s biggest source of imported gas, were at 112 million cubic meters a day, compared with a 30- day average of 116 million, Gassco AS data show.

Output from Norway’s Troll A gas field in the North Sea will be cut by 37 million cubic meters a day from Jan. 21 to Jan. 24, Statoil ASA (STL) said yesterday on its website.

Imports from Belgium were at a rate of 27 million cubic meters a day, the 14th consecutive day of shipments to the U.K. along the reversible pipeline between Zeebrugge and Bacton, Interconnector Ltd. data show.

Inventories

Inventories at Rough, the U.K.’s biggest gas-storage facility, were at 25,601 gigawatt-hours yesterday, down from about 31,000 at the same time last year, yet up from 17,000 in 2011, National Grid data show. So-called medium-range storage was at 8,574 gigawatt-hours, a record for the time of year.

Gas accounted for 36 percent of U.K. power production at 9:40 a.m., grid data show. Coal generated 41 percent, nuclear 18 percent and wind 3.6 percent.

Electricity for tomorrow climbed 3 percent to 53.55 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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