U.K. natural gas for spot delivery fell after reaching a one-month high as record withdrawals from storage sites offset reduced flows from Norway.
Same-day gas declined 1.7 percent after advancing as much as 5.8 percent to the highest level since Dec. 29, according to broker data compiled by Bloomberg. Withdrawals from storage sites jumped to the highest level since Bloomberg started compiling National Grid Plc data in April 2013, helping meet increased demand amid colder-than-normal temperatures.
Outages at the Sleipner field and the Kollsnes gas plant in Norway cut flows to the U.K. for as many as four days, according to data from pipeline operator Gassco AS. Norwegian flows into Britain fell to less than a quarter of forecast demand, Gassco data showed. Storage withdrawals reached an all-time high of 118 million cubic meters a day, according to National Grid data.
Below-average temperatures are forecast for the next five days, according to MDA Weather Services. The lowest power generation from wind since Jan. 22 boosted the share of gas used for electricity to 35 percent, according to National Grid Plc.
Same-day gas fell to 48.3 pence a therm ($7.27 a million British thermal units) by 3:29 p.m. London time after reaching 52 pence earlier today, broker data show. The next-day contract advanced a fifth day, rising 0.3 percent to 48.40 pence a therm.
Gas exports from Norway to the U.K. were at 85 million cubic meters (3 billion cubic feet) a day, from as much as 115 million yesterday, according to Gassco. Sleipner output will be cut by 12.2 million cubic meters Monday after an outage that started on Friday while Kollsnes flows will be cut by 34.5 million cubic meters Monday after a reduction since Thursday, Gassco said.
“Undoubtedly this has led to the surge on the spot and helped support the near curve,” Nick Campbell, an energy risk manager at Inspired Energy Plc, said by e-mail. “Lower wind generation has also increased system gas demand.”
U.K. Spot Gas Falls as Record Storage Flows Offset Norway Cuts