British wholesale gas prices rose on Aug. 7 as reduced Norwegian flows and expectations of lower temperatures created an undersupplied system, traders said.
The within-day gas price rose by £1.15 (US 2 cents) to £41.25 (US 54 cents) per therm at 11:10 CT. Day-ahead gas was up by £1.20 (US 2 cents) at £41.05 (US 54 cents) per therm.
Traders said Norwegian flows remained at low levels and there were forecasts of lower temperatures this week which was causing undersupply. Britain's gas system was undersupplied by 22.1 million cubic meters per day (MMcm/d), with demand forecast at 169.5 MMcm/d and supply at 147.4 MMcm/d, National Grid data shows.
Total gas supply from Norway to Britain remained low at 68 MMcm as an outage at Norway's Heimdal transportation hub curbed flows by 12.4 MMcm and the Langeled pipeline was at 32 MMcm, compared to 42 MMcm on Aug. 4. Britain's Hornsea gas storage site will undergo an outage from Aug. 28 until Sep. 18, reducing the daily withdrawal capacity by 67.04 gigawatts (GW).
The Sept. gas contract edged up by £.70 (US 1 cent) to £40.70 (US 53 cents) per therm. The day-ahead gas price at the Dutch TTF hub rose by EU€ .09 (US 11 cents) to 15.27€ (US$18) per megawatt-hour (MWh). The benchmark Dec-17 EU carbon contract fell 0.06€ (US 7 cents) to 5.29€ (US$6) a ton.
Recommended Reading
Targa Expects Another Major Permian Pipeline Project This Year
2024-05-03 - Targa Resources says different projects are falling in place for gas capacity expansion
US Appeals Court Upholds FERC Approvals for Gas Pipeline Expansion
2024-05-02 - A unanimous three-judge panel of the U.S. Circuit Court of Appeals for the D.C. Circuit held that the Federal Energy Regulatory Commission was right to determine the Evangeline Pass Expansion project is functionally separate from four related gas infrastructure developments.
Enterprise Targets FID for SPOT Project by End of 2024
2024-05-01 - Enterprise Products Partners’ co-CEO disputed capex figures reported in the media regarding its Sea Port Oil Export Terminal.
US Reforms Green Law to Speed Clean Energy, Infrastructure Permits
2024-04-30 - The reforms are the second and final phase of adjustments to the National Environmental Policy Act, or NEPA, by the Biden administration.
Canadian Railway Companies Brace for Strike
2024-04-25 - A service disruption caused by a strike in May could delay freight deliveries of petrochemicals.