London — British wholesale gas prices rose on Monday morning as wind power output dropped from Friday’s levels, increasing demand for gas for power plants.
* Day-ahead gas was 1.65 pence higher at 30.50 pence per therm at 0810 GMT.
* September contract up 0.35 pence at 33.60 p/therm.
* “Wind (output) is considerably lower than on Friday,” a UK gas trader said.
* Peak wind generation is forecast at 6.4 gigawatts (GW) on Monday, falling to 3.3 GW on Tuesday, Elexon data shows.
* This is lower than the 10 GW of output on Friday, which has raised gas-for-power demand.
* The gas system is undersupplied by 13 million cubic metres (mcm), with demand forecast at around 162 mcm and flows at 149 mcm/day, National Grid data shows.
* Although the market is undersupplied, UK Continental Shelf (UKCS) flows are at 86 mcm/day, up from 72 mcm on Friday, as gas fields ramp up after maintenance.
* “We expect UKCS production to ramp-up slowly over the next 1-2 days reaching around 98-100 mcm/d by the middle of the week,” Refinitiv gas analysts said.
* Norwegian production output is also slightly higher than on Friday.
* The Dutch month-ahead contract was 0.44 euro higher at 12.07 euros per megawatt hour.
* The benchmark EU carbon price edged down by 0.10 euro to 28.02 euros a tonne.