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LNG flow stoppage boosts prices

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LNG Industry,


Reuters are reporting that British wholesale gas prices rose on 9 April as a halt to flows from a LNG terminal created an undersupplied system.

Day-ahead gas was 0.85 pence higher at 49.50 pence per therm on the morning of 9 April.

Within-day gas rose by 1.40 pence to 50 p/therm.

The system was undersupplied by 18.7 million m3/day, with demand forecast at 257.5 million m3/day and flows at 238.8 million m3/day, according to National Grid data.

Demand from gas-fired power stations should increase to 63 million m3/day from 42 million m3/day on 6 April due to falling wind power output, Thomson Reuters analysts said.

LNG send-out from the Isle of Grain terminal – set to receive a cargo from Trinidad on 9 April – dropped to zero from around 13 million m3/day overnight, tightening supplies.

“The context is rather mixed – there is strong demand from (gas-fired power plants) this morning to compensate for low wind power production but the outlook for next week is rather mild,” a senior analyst at a major European energy company said.

“The LNG supply outlook is really uncertain and sendouts could drop quickly if there is not a new cargo delivery in the coming days,” he said.

The start of Norway’s summer gas field maintenance programme from 10 April, coupled with strong coal prices and record low stored gas reserves, are also helping support prices, he added.

Dutch day-ahead gas prices edged up to €18.83 per megawatt hour.

Read the article online at: https://www.lngindustry.com/liquefaction/09042018/lng-flow-stoppage-boosts-prices/

 

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