Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD FUTURES

    2,254.80
    +42.10 (+1.90%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    56,164.00
    +1,380.04 (+2.52%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

UK GAS-Prompt prices rise on lower wind power output

* Gas system 22.1 mcm undersupplied

* Peak wind output 3.2 GW; expected to fall to 2.4 GW on Wed

LONDON July 12 (Reuters) - British prompt gas prices rose on Tuesday morning as demand from the power sector increased due to lower output from the country's wind farms.

Gas for immediate delivery was 0.80 pence higher at 34.00 pence per therm at 0803 GMT, while gas for day-ahead delivery increased by 0.55 pence to 33.85 p/therm.

With (Other OTC: WWTH - news) supply flows at 176.6 mcm and demand expected to be 198.7 mcm/day, Britain's gas system was 22.1 mcm undersupplied, National Grid (LSE: NG.L - news) data showed.

ADVERTISEMENT

Tuesday's demand was around 17 percent above the seasonal norm of 170 mcm, the data showed. Traders said low forecasts for output from the country's wind farms had increased demand for gas from power generators.

Wind power output was expected to peak at 3.2 gigawatts (GW) on Tuesday, and to fall to 2.4 GW on Wednesday, National Grid data showed.

Britain has a total installed wind power capacity of almost 9 GW.

Gas prices further along the curve also edged higher, with the Winter 2016 gas contract up 0.1 pence at 43.90 p/therm.

In the Netherlands, the day-ahead price at the TTF hub was up 0.17 euro at 14.05 euros per megawatt-hour.

In Europe's carbon market, the front-year EU allowance price was up 0.08 euro at 4.51 euros per tonne. (Reporting by Susanna Twidale; editing by Nina Chestney)