UK prices rise on cooler, less windier weather

LONDON (Reuters) – British wholesale gas prices rose on Monday as cooler and less windier weather raised demand for heating and power consumption, while the European prices rose modestly as concerns over Russian gas disruption are easing.

British gas contract for next day delivery rose by 18 pence to 158.00 pence per therm by 0930 GMT.

The UK system is 3.8 million cubic meters undersupplied on Monday, National Grid’s data showed.

Peak wind power generation in the UK is forecast at 2.8 gigawatts (GW) on Monday falling to 2.2 GW on Tuesday, Elexon data showed out of a total metered capacity of 19932 GW.

The rise in gas demand for heating and power consumption today is largely offset by a strong flow of LNG [LNG/TKUK].

Refinitiv analysts forecast gas-for-power demand at 61 mcm a day on Monday, significantly higher than 34 mcm observed on Friday when wind speeds were stronger.

However, they said consumption forecast is expected to be adjusted lower in the coming days due to warmer and windier weather returning, pushing prices down.

On the Dutch TTF hub, prices were modestly higher with the contract for June rising 0.32 euro to 87.2 euros per megawatt/hour (MWh) and the contract for July delivery up by 0.33 euro at 91.95 euros/MWh, based on prices on the Intercontinental Exchange (ICE).

Eastbound gas flows via the Yamal-Europe pipeline from Germany to Poland fell on Monday morning from their Friday levels, while flows into Slovakia from Ukraine via the Velke Kapusany border point and flows to Germany through the Nord Stream 1 pipeline across the Baltic Sea were stable.

In the European carbon market, the benchmark contract was up 0.14 euro at 84.34 euros a tonne.

(Reporting by Marwa Rashad; Editing by Shailesh Kuber)