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UK GAS-Prompt prices edge up on looming French power strike, lower BBL imports

Wed, 09th Dec 2020 09:00

LONDON, Dec 9 (Reuters) - British prompt wholesale gas
prices edged up on Wednesday morning as imports throught the BBL
pipeline fell and amid concerns about a looming strike at EDF's
French power plants.

* The day-ahead contract was 0.50 pence higher
at
41.00 pence per therm by 0853 GMT.

* Gas for immediate delivery inched up by 0.10
pence
to 41.00 p/therm.

* Traders said a looming strike at EDF in France
from
Thursday could be providing upside support for gas.

* Although the impact on power capacity of the strike is not
known, France relies on nuclear for the bulk of its electricity
and disruptions there can have a knock-on effect on the UK gas
market.

* EDF's unions have called to go on strike on Dec. 10
against the
French utility's restructuring plan.

* Imports through the BBL pipeline to Britain are nominated
at 8
million cubic metres (mcm), 11 mcm lower from the 19 mcm seen
since the beginning of the month.

* Other market drivers are bearish.

* Local distribution zone demand, mainly for heating, is
lower and
liquefied natural gas send-out is nominated higher.

* The latest weather forecast for the rest of this week
shows
below normal temperatures in north-west Europe but milder
weather with temperatures around 3 degrees Celsius above normal
are forecast for next week, Refinitiv gas analysts said.

* Gas-for-power demand is forecast 19 million cubic metres
(mcm)
lower for Thursday as stronger wind output is expected.

* Higher wind generation typically lowers demand for gas
from
power plants.

* Peak wind generation is forecast at 6.9 gigawatts (GW) on
Wednesday, rising to 12.4 GW on Thursday, out of total metered
capacity of around 18 GW, Elexon data showed.

* The gas system was oversupplied by 9 mcm, with demand
forecast
at 335 mcm and flows at 344 mcm/day, National Grid data showed.

* The January gas price at the Dutch TTF hub
was up
0.12 euro at 14.52 euros per megawatt hour.

* The benchmark Dec-20 EU carbon contract was 0.51
euro
higher at 30.08 euros a tonne.
(Reporting by Nina Chestney)

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