High imports, forecasts of milder temperatures and a decision against strike action all provided bearish pressure for UK NBP gas contracts Wednesday morning which pushed prompt prices to near two-week lows.
At midday BST, the day-ahead at 64.80 pence/therm, down 1.05 p/th and front-month November at 68.90 p/th, down 0.45 p/th contracts were each trading at the lowest levels seen since Thursday.
The within-day hit a low of 64.45 p/th, but climbed to 65.00 p/th by midday as demand rose throughout the morning. It closed Tuesday at 65.50 p/th. Demand throughout the morning went from around 214 million cubic meters to 219 million cu m in the country’s gas network operator, National Grid’s 11:00 am forecast. On Tuesday, demand was lower at 207 million cu m and at the time National Grid was expecting Wednesday’s level at 203 million cu m. Despite the higher than expected demand, the system was well supplied with forecast flows at 221 million cu m.
The Netherlands and Norway continued pumping gas to the UK at high rates with the Langeled line at 63 million cu m/day and BBL at 16 million cu m/d.
Send-out from the South Hook LNG terminal was steady at 19 million cu m/d and local port data revealed Monday morning that the Al Rekayyat tanker from Qatar is expected Tuesday.
Gas was also being withdrawn from storage during the morning, with the medium-range Holford facility adding 10 million cu m/d.