Wholesale gas prices in the UK rose this week as demand from gas power plants rose following low wind output during the current heatwave.
On Tuesday, within-day contract was up 1.00p for TRGBNBPWKD at 56.75p per therm, while day-ahead gas TRGBNBPD1 was also up 1.00p at 56.60p per therm.
One British trader said: “Low wind [output] raised prices. Tomorrow is a very strong day (for demand) in UK gas-to-power … all in all a bit bullish.”
National Grid data showed that the British gas market was marginally undersupplied with forecast demand at 189.5 million cubic metres and supplies at 185.4 million cubic metres per day.
Wind is expected to generate 2.7GW of power on Wednesday – significantly lower than the UK’s total capacity of 12.1GW.
This comes following a recent US report that found methane leaks from the oil and gas industry are 60% higher than previously thought, raising calls for gas to be dropped as the “bridge fuel” to keep the lights on until renewables have been sufficiently developed.