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
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
To Dawson: EOG, SM Energy, More Aim to Push Midland Heat Map North
2024-02-22 - SM Energy joined Birch Operations, EOG Resources and Callon Petroleum in applying the newest D&C intel to areas north of Midland and Martin counties.
Range Resources Expecting Production Increase in 4Q Production Results
2024-02-08 - Range Resources reports settlement gains from 2020 North Louisiana asset sale.
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.
TotalEnergies Restarts Gas Production at Tyra Hub in Danish North Sea
2024-03-22 - TotalEnergies said the Tyra hub will produce 5.7 MMcm of gas and 22,000 bbl/d of condensate.