May 4, 2020 / 10:19 AM / in a month

UK GAS-Prices rise on high exports and low LNG supply

LONDON, May 4 (Reuters) - British wholesale gas prices rose on Monday morning amid an undersupplied gas system caused by lower liquefied natural gas (LNG) send-out and higher UK exports to the continent.

* The day-ahead contract rose by 0.80 pence to 14.00 pence per therm by 0852 GMT.

* The within-day gas contract rose by 0.25 p to 14.25 p per therm.

* UK gas system was undersupplied by 17.9 million cubic metres (mcm), with demand forecast at 208.2 mcm and supply at 190.3 mcm, National Grid data showed.

* Exports from Britain to continental Europe were almost at full capacity, leaving less gas on the UK market.

* Flows via the Interconnector pipeline to Belgium were expected on Monday at 35 mcm out of 38 mcm booked capacity and flows through the BBL pipeline to the Netherlands at 13 mcm out of 15 mcm capacity.

* LNG send-out was expected to fall to 53 mcm on Monday from 68 mcm on Friday, also contributing to a short system.

* A total of six tankers are currently confirmed to unload in Britain by May 14, with five of those arriving from Qatar.

* UK gas storage is expected to be in an injection mode, compared to withdrawals in the previous day.

* “Switch to injection nominations today partly explains the undersupply on the opening this morning,” Refinitiv analysts said in a morning note.

* Peak wind generation is forecast at 6.1 gigawatts (GW) on Monday and 6 GW on Tuesday, out of a total metered capacity of 15 GW, Elexon data shows.

* Britain’s gas consumption was forecast to be lower on Monday due to warmer weather, limiting price rises on UK gas contracts.

* Residential gas consumption is forecast to increase on Tuesday compared to Monday, however, Refinitiv data showed.

* Gas-for-power demand is at around 10 GW, or 41% of UK power demand, said Wayne Bryan, director of European gas research at Refinitiv.

* The month-ahead contract rose by 0.45 p to 13.65 p/therm.

* On the Dutch gas market, the day-ahead price rose by 0.25 euro to 5.50 euros per megawatt hour (MWh).

* The benchmark Dec-20 EU carbon contract inched up by 0.12 euro to 19.09 euros a tonne. (Reporting by Ekaterina Kravtsova; editing by Nina Chestney)

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