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UK GAS-Prices rise on low LNG send-out, wind output

Fri, 16th Jul 2021 10:07

LONDON, July 16 (Reuters) - British wholesale gas prices
rose on Friday morning as low wind output increased demand,
liquefied natural gas send-out remained low and an outage
extension was expected to cut domestic production.

* The day-ahead contract was up by 3.00 pence to
87.00
pence per therm by 0903 GMT.

* The weekend contract was 2.53 pence higher at
87.00
p/therm.

* Gas-for-power demand has increased due to low wind output,
liquefied natural gas send-out remains low and an outage at the
Bacton SEAL has been extended, a gas trader said.

* Day-ahead gas-for-power demand is expected to be up by 13
million cubic metres (mcm), Refinitiv Eikon data showed.

* "UK wind speeds are expected to decrease over the next few
days,
substantially slowing wind power generation next week," said
Refinitiv gas analyst Katarzyna Piaskowska.

* Peak wind generation is forecast at 5.1 gigawatts on
Friday and
4.2 GW the following day, out of total metered capacity of
nearly 20 GW, Elexon data showed.

* Langeled flows from Norway are nominated at 48 mcm/day,
but are
expected to drop in the coming days due to maintenance at the
Troll gas field.

* The August contract was 2.51 pence higher at
85.60
p/therm.

* The month-ahead Dutch gas contract rose by
1.25
euro to 35.35 euros per megawatt hour.

* An auction for gas capacity via Ukraine on July 19 will be
watched by the market.

* "Given the previous months’ results and the EU Court of
Justice
decision, the expectation is that Gazprom will highly likely
book 15 mcm/d offered on the Sudzha border point," said
Piaskowska.

* The benchmark Dec-21 EU carbon contract was 0.48
euro
higher at 53.45 euros a tonne.
(Reporting by Nina Chestney)

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