LONDON, Dec 5 (Reuters) – Prompt British wholesale gas prices fell on Thursday as rising temperatures reduced demand, leaving the UK system oversupplied.
* The within-day contract was down 2.85 pence at 33.15 p/therm by 0959 GMT.
* The day-ahead contract was down 1.65 pence at 33.75 p/therm.
* The UK gas system was 21.8 million cubic metres (mcm) oversupplied, with forecast demand below the seasonal norm at 288.1 mcm and supply at 309.9 mcm, National Grid data showed.
* Local distribution zone (LDZ) demand, mainly for home heating, was forecast at 188 mcm on Friday, down 38 mcm from Thursday.
* Average temperatures are forecast to rise to 10.5 degrees Celsius on Friday from 5.9 degrees on Thursday, according to Refinitiv Eikon data.
* LNG sendout was strong at 136 mcm while flows from Norway and the UK Continental Shelf were down by around 20 mcm, Refinitiv Eikon data showed.
* “The LNG (liquefied natural gas) arrival rate and current storages status ensure sendout will remain high,” said Wayne Bryan, senior European energy & commodity analyst at Alfa Energy.
* “With no cooler temperatures forecast for another 7 days the system will remain comfortable and forecast LDZ demand is also softer,” he said.
* Ten LNG tankers are expected at UK terminals between Dec. 7-15.
* Wind generation expected to remain high at 12.7 Gigawatts (GW) on Thursday and 11.9 GW on Friday, Elexon data showed, reducing gas-for-power demand.
* An unplanned outage at Barrow on the UK Continental Shelf is scheduled to end on Thursday, though planned maintenance will again cut capacity from Dec. 7-14.
* Further out, the January gas contract fell 0.68 p to 40.35 p/therm, while the summer 2020 contract dropped 0.55 p to 35.80 p/therm.
* The day-ahead gas price at the Dutch TTF hub was down 0.36 euro at 14.52 euros per megawatt hour.
* The benchmark Dec-19 EU carbon contract was down 0.21 euro at 24.53 euros per tonne. (Reporting by Peter Hobson, editing by Susanna Twidale)