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UK GAS-Day-ahead price up on outages, lower Vesterled flows

Tue, 13th Jul 2021 09:34

LONDON, July 13 (Reuters) - The British day-ahead wholesale
gas price inched up on Tuesday morning due to lower flows
through the Vesterled pipeline and an unplanned outage at a UK
terminal but the August contract dipped amid expectations of
higher wind output.

* The day-ahead contract was up 0.75 pence at
85.00
pence per therm by 0821 GMT.

* Norwegian flows via the Vesterled pipeline are nominated
at 3
million cubic metres (mcm), down 25 mcm from the day before,
Refinitiv Eikon data showed.

* An unplanned outage at Barrow North terminal began on
Tuesday,
which could curb UK domestic production.

* Russian flows via the Nord Stream pipeline are also at
zero due
to a planned outage, scheduled between July 13-23.

* However, the system was almost balanced, with supply
forecast at
144 mcm and demand at 146 mcm/day, National Grid data showed.

* "There is a risk on the bearish side, that the market may
continue downward trend, which started yesterday," said
Refinitiv gas analyst Iryna Sereda.

* On the demand side, wind power generation is expected to
ramp up
to seasonal normal towards the middle of the week, Refinitiv gas
analysts said.

* Peak wind generation is forecast at 3.5 gigawatts (GW) on
Tuesday and 5.2 GW on Wednesday, out of total metered capacity
of nearly 20 GW, Elexon data showed.

* The August British gas contract was 1.55
pence
lower at 83.40 p/therm.

* The month-ahead Dutch gas contract was 0.25
euro
lower at 34.15 euros per megawatt hour.

* The benchmark Dec-21 EU carbon contract was 0.54
euro
higher at 52.25 euros a tonne.

* The benchmark Dec-21 British carbon contract was
0.20
pounds lower at 42.85 pounds per tonne.
(Reporting by Nina Chestney)

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