LONDON, Nov 19 (Reuters) - British day-ahead wholesale gas
declined on Thursday morning due to lower gas-for-power demand
forecasts, after rising sharply the previous day.
* The day-ahead contract fell by 0.50 pence to
36.50
pence per therm by 1007 GMT.
* Other prompt contracts were slow to trade.
* On Monday, the day-ahead price rose sharply due to
increases in
demand on lower temperature forecasts.
* This incentivised higher supply from the BBL pipeline from
the
Netherlands and Norway, Refinitiv gas analysts said.
* "Prices likely to adjust lower today, supported by gas for
power
demand to drop by 19 million cubic metres (mcm) on the
day-ahead," they said.
* "The downside might be limited by a short UK system on
opening
today and expectations for a strong increase in consumption in
north-west Europe on the day-ahead", they added.
* The system was under-supplied by around 11 million cubic
metres
(mcm), with demand forecast at 251 mcm and flows at 240 mcm/day,
National Grid data showed.
* Average temperatures are forecast to dip to 5.7 degrees
Celsius
on Friday before rising to 9C over the weekend, Refinitv Eikon
data showed.
* Peak wind generation is forecast at nearly 15 gigawatts
(GW) on
Thursday and 13.3 GW on Friday, out of total metered capacity of
around 18 GW, Elexon data showed.
* Strong wind output typically reduces demand for gas from
power
plants.
* On the curve, the Q4 2021 price was down 0.50 pence at
39.10
p/therm.
* The December price at the Dutch TTF hub was
0.35
euro lower at 13.25 euros per megawatt hour.
* The benchmark Dec-20 EU carbon contract was down
by
0.40 euro at 26.79 euros a tonne.
(Reporting by Nina Chestney)