Prompt prices ease on higher LNG deliveries, near balanced system

British prompt wholesale gas prices eased as higher deliveries from liquefied natural gas (LNG) terminals helped to offset lower flows from the UK continental shelf.

 Gas for immediate delivery was down 0.20 pence at 24.80 pence per therm by 0848 GMT.

 The day-ahead price was trading 0.30 pence lower at 24.90 p/therm.

 The system was close to balanced on Tuesday morning, with demand forecast at 309.2 mcm and flows at 304.2 mcm/day, National Grid data shows.

 Supply from LNG terminals rose to 88 mcm/day from 74 mcm/day on Monday, offsetting a decline in flows from the UK continental shelf due to maintenance at Barrow North terminal.

 Gas-for-power demand for the day ahead was forecast at 81 mcm/day, 11 mcm higher than the previous forecast, Refinitiv Eikon data shows.

Peak wind generation was forecast to fall to 5.9 GW on Wednesday from around 9.7 gigawatts (GW) on Tuesday, compared to total capacity of 17.9 GW, Elexon data shows.

 About a dozen LNG tankers are expected to arrive to Britain by March 20, with two tankers, Gaslog Glasgow and K.Mugungwha, having been diverted after missing their slots due to a storm, Refinitiv data showed.

 The April contract was down 0.15 pence at 22.70 p/therm.

 Higher oil prices < LCOc1> may support a prompt curve today, analysts at Refinitiv said in a note.

 The Dutch TTF April contract was 0.05 euro higher at 8.93 euros per megawatt hour.

 The benchmark Dec-20 EU carbon contract was 0.18 euro lower at 23.34 euros a tonne. (Reporting by Nerijus Adomaitis in Oslo; editing by Philippa Fletcher)

 

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