LONDON, Jan 4 (Reuters) - British prompt wholesale gas
prices rose to rose to two-year highs on Monday morning as
colder temperatures drove up heating demand and as liquefied
natural gas supply was low.
* The day-ahead contract was 1.65 pence higher
at
59.00 pence per therm by 0838 GMT, a two-year high.
* The within-day contract rose by 2.30 pence to
59.00
p/therm, also a two-year high.
* The system was under-supplied by around 23 million cubic
metres
(mcm), with demand forecast at 347 mcm and supply at 324
mcm/day, National Grid data showed.
* Demand was above the seasonal norm of 319 mcm.
* Local distribution zone consumption, mainly for heating,
is high
due to low temperatures.
* Average temperatures in Britain are forecast to drop
towards the
end of the week to near zero.
* Liquefied natural gas (LNG) send-out is low as colder
weather in
Asia has driven LNG prices to a six-year high, disincentivising
cargoes coming to north-west Europe, Refinitiv gas analysts
said.
* Total LNG sendout to the UK is nominated at 21 mcm/d, down
from
the already low level of 45 mcm/day on average for the last
seven days of December.
* Gas-for-power demand is forecast to rise as wind power
output is
expected to drop to reach below normal by mid-week.
* Peak wind generation is forecast at 8.7 gigawatts (GW) on
Monday
and 7.3 GW on Tuesday, out of total metered capacity of around
18 GW, Elexon data showed.
* The February contract rose by 2.30 pence to
58.65
p/therm.
* The day-ahead gas price at the Dutch TTF hub
was up
by 0.80 euro to 19.60 euros per megawatt hour.
* The benchmark Dec-21 EU carbon contract was up
1.30
euro at 34.02 euros a tonne.
(Reporting by Nina Chestney)