July 23, 2018 / 7:56 AM / 9 months ago

UK GAS-Prices rise amid reduced supply due to Total strike

LONDON, July 23 (Reuters) - British wholesale gas prices rose on Monday morning as a strike on some of Total’s North Sea oil and gas platforms began, reducing supply, and as wind output remained low.

* Day-ahead gas was 0.60 pence higher at 58.00 pence per therm at 0738 GMT

* Trader said a strike on some of Total’s North Sea oil and gas platforms had reduced UK Continental Shelf flows, which was bullish for prices

* Ongoing low wind output was also driving up gas-for-power demand, they added

* The Unite union said 40 people were on strike for 24 hours from 0500 GMT on Monday on the Alwyn, Elgin and Dunbar North Sea oil and gas platforms

* As a result, there are 13 million cubic metres (mcm) less receipts of gas than usual into the NSMP St Fergus and Bacton Seal gas terminals

* The UK gas system is 5 mcm undersupplied with demand forecast at 179 mcm and flows at 174 mcm/day, National Grid data shows

* Peak wind generation is forecast at nearly 2 gigawatts (GW) on Monday, falling to 1.3 GW on Tuesday, Elexon data shows

* Gas-for-power has been 56 mcm/d this month compared to 46 mcm/d in July 2017, said Thomson Reuters gas analyst Oliver Sanderson

* Low wind ouput is expected to continue into August

* In August, there will be several planned outages in the UK Continental Shelf, which will also be a bullish driver for prices

* The August contract was 0.70 pence higher at 57.85 p/therm

* In the Dutch gas market, the August contract was up 0.15 euro at 22.00 euros per megawatt hour

* The benchmark Dec-18 EU carbon contract was 0.04 euro higher at 17.11 euros a tonne (Reporting by Nina Chestney)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below