LONDON, March 24 (Reuters) - British wholesale gas prices
rose on Wednesday morning on colder weather and diversions in
the Suez Canal which could slow liquefied natural gas (LNG)
arrivals.
* The day-ahead contract was up 0.65 pence at
46.25
pence per therm by 0846 GMT.
* The weekend contract was 1.50 pence higher at
46.00
p/therm.
* A cold snap for the rest of this week and diversions in
the Suez
Canal after a ship ran aground was helping to buoy prices,
traders said.
* Colder temperatures are forecast in Britain and north-west
Europe towards the weekend, before rising to well above the
season norm early next week.
* "Today's upside risk may come from a congestion in a Suez
Canal
after a large container ship ran aground on Wednesday, blocking
vessels passing through. This may cause a delay in LNG tanker
arrivals depending on how long the congestion will last," said
Refinitiv gas analysts.
* Sources said the incident occurred because of bad weather.
Operations to float and free the vessel began on Wednesday
morning, they said, adding that some delays to shipping were
expected.
* Several LNG tankers are currently en route to north-west
Europe.
* Despite that, other fundamentals were bearish.
* Gas-for-power demand is weak due to strong wind output.
* Peak wind generation is forecast at 9.6 gigawatts (GW) on
Wednesday, rising to nearly 14 GW on Thursday, out of total
metered capacity of around 18 GW, Elexon data showed.
* Britain's gas system was over-supplied by 26 million cubic
metres (mcm), with demand forecast at 242 mcm and supply at 268
mcm/day, National Grid data showed.
* In the Dutch gas market, the April gas price
at the
TTF hub was 0.33 euro higher at 18.68 euros per megawatt hour.
* The benchmark Dec-21 EU carbon contract was 0.29
euro
lower at 41.14 euros a tonne.
(Reporting by Nina Chestney)