LONDON, Dec 27 (Reuters) - British prompt gas prices rose on
Friday in response to imports from mainland Europe falling to
zero, creating a supply shortage even though demand is weak and
temperatures are mild compared with previous winters.
Day-ahead gas prices gained 0.75 pence to 69.05
pence per therm, while gas for weekend delivery rose 0.35 pence
to 69 pence.
The milder conditions weighed on gas demand, which National
Grid data pegged 23 percent lower than the seasonal norm at 307
million cubic metres/day (mcm), with Britain's gas market
undersupplied by 14 mcm.
Britain's overall gas demand is lagging many previous
winters when consumption rates on peak days regularly topped 400
Imports from Belgium and the Netherlands dropped to zero on
Friday from around 20 mcm and 32 mcm, respectively, overnight.
Analysts at Thomson Reuters Point Carbon expected flows to
resume later on Friday, however, in line with a pattern
established over the Christmas holiday period.
'We expect Dutch flows to pick up during the day today as
they did on 24 December after they started the day at zero,' the
Domestic gas output is running below expectations chiefly
due to a 10 mcm drop in flows entering ExxonMobil's St. Fergus
Norwegian exports to Britain are steady with flows via
Langeled - Norway's main export route into the UK - running at
near maximum capacity of 72 mcm.
Withdrawals from underground storage sites were at bare
minimum levels despite an undersupplied network, with the
country's biggest site, Rough, pumping out less than 1 mcm.
Summer 2014 gas shed 0.05 pence at 65.35 pence
per therm, taking cues from slightly weaker crude oil prices.
British baseload day-ahead power prices traded at 47.90
pounds per megawatt hour.
(Reporting by Oleg Vukmanovic; Editing by Jane Merriman)
((Oleg.Vukmanovic@thomsonreuters.com)(44 207 542 0014)(Reuters
UK natural gas prices
National Grid instant flows
National Grid gas demand
North Sea gas and power maintenance
UK: baseload prices, peakload prices,
FRANCE: baseload prices, peakload prices, outages, report
GERMANY: baseload prices, peakload prices, outages, report
CENTRAL EUROPE: report
SWITZERLAND: outages, reservoir levels
EU CARBON PRICES SPEEDGUIDE:
Keywords: MARKETS BRITAIN GAS/POWER
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