UK GAS-Prices decline on correction, higher Norwegian flows
8/4/2021 9:35:08 AM

British wholesale gas prices declined on Tuesday morning as flows increased from Norway and prices corrected after gains on Monday.

The day-ahead contract declined by 0.80 pence to 106.75 pence per therm by 0834 GMT.

The system was nearly 16 million cubic metres (mcm) over-supplied, with demand forecast at 130 mcm and supply at 146 mcm/day, National Grid data showed.

Norwegian flows have increased, with higher flows via the Langeled pipeline.

Wind power output is still low, however. Peak wind generation is forecast at 1.2 gigawatts (GW) on Tuesday and 1.8 GW on Wednesday, Elexon data showed.

The September gas price at the Dutch TTF hub fell by 0.43 euro to 41.72 euros per megawatt hour, after hitting a new record high on Monday.

Supply concerns pushed prices higher, particularly a drop in flows via the Mallnow compressor station, while weak renewables output also increased gas-for-power demand.

However, Norwegian supply is expected to rise later this week and a correction of prices is likely, Refinitiv analysts said.