Kiran Stacey UK heading for record gas demand

The UK’s freezing temperatures are bad news for travellers, but decidedly good news for gas suppliers.

National Grid has forecast a record day for gas demand, and has been forced to issue a “gas balancing alert” to encourage suppliers to up supply and big consumers to switch fuels or reduce consumption. That’s the seventh time such an alert has been issued since 2005.

All this has been good news for prices too (as long as you’re a seller of course). This was from Bloomberg this morning:

Gas for delivery today rose to 73.5 pence a therm as of 9 a.m. in London, according to broker data compiled by Bloomberg. National grid forecast demand may rise to 465.8 million cubic meters today, above the record 465.5 million cubic meters set on Jan 8.

The network manager said in an e-mailed statement that it issued the first gas balancing alert of the winter yesterday. The alert is meant to act as a signal to gas shippers to increase flows, while some companies may respond by reducing consumption.

This is from National Grid:

The forecast for gas demand today (Monday 20 December) shows that a new record remains a possibility.  The latest update issued at 17:00 for Britain to consume 468.0 million cubic metres (mcm) of gas across Monday.  The record of 465.5 mcm was set on 8 January 2010.

Demand tomorrow (Tuesday 21 December) is forecast to fall to 458.7 mcm.  Supplies remain strong, but as this is still above the current trigger level of 452.4 mcm, National Grid has issued another Gas Balancing Alert for the day ahead – the seventh since the tool was introduced in 2005.