SG:U.K. July Gas Falls Amid Ample Supply, Day-Ahead Power Rises
June 6 (Bloomberg) -- U.K. natural gas for next month fell amid ample supplies of the fuel as flows from liquefied gas terminals increased and exports declined. Day-ahead power rose.
Flows from the Dragon and South Hook LNG terminals in south Wales increased, boosting supply, according to National Grid Plc data on Bloomberg. Pipelines in the country will contain 348 million cubic meters of gas at 6 a.m tomorrow, 8 million more than at the start of today, according to the network manager.
Exports to mainland Europe were forecast to drop. Interconnector (U.K.) Ltd.'s pipeline was exporting at a rate of about 21 million cubic meters a day to Belgium from 39 million yesterday, according to data on the company's website.
Gas for July declined 0.35 pence, or 0.6 percent, to 58 pence a therm as of 8:30 a.m. in London, according to broker prices compiled by Bloomberg. That's equal to $9.53 a million British thermal units.
"There are some indications that some southern and eastern parts of the U.K may see temperatures rising above average at times" from June 20 through July 4, the Met Office said on its website. Warmer weather may cut heating demand.
U.K. baseload power for the next working day rose 60 pence, or 1.2 percent, to 51.10 pounds a megawatt-hour, according to broker data compiled by Bloomberg. Baseload is delivered around the clock.
