LONDON, Feb 1 (Reuters) - British gas prices moved higher on
Friday as the system was left short by lower flows from UK
gasfields, fewer imports and less liquified natural gas remains,
while colder weather will drive demand for heating, traders said
The within-day gas price gained 1.50 pence day on day to
67.20 pence per therm, while day-ahead gas traded up 1.35 pence
at 66.90 pence.
'A mix of factors are impacting the prompt contract, lower
supply and colder weather while the lengthy reduction in supply
from Troll (Norway's largest gasfield) is supporting the March
contract,' said a trader at a utility.
The UK gas system was short at around 15.5 million cubic
metres per day (mcm/day), National Grid data showed, while
forecast demand of 294.7 mcm exceeeded predicted supply of 279.2
mcm, according to data from National Grid.
Demand is expected to be 3.2 percent below seasonal norms
the same data showed, although colder weather is expected after
a recent spell of milder temperatures, the Met Office forecast.
Analysts at Reuters Point Carbon said the fall in supply was
mainly the result of weaker flows through the Vesterled pipeline
into the St Fergus terminal, where supply was down to 25 mcm/day
from over 35 mcm/day on Thursday, from while supply to
continental Europe rose.
The IUK pipeline once again flipped into import mode, with
8 mcm/day expected to flow from Belgium to Britain, while supply
from the South Hook LNG terminal is expected to fall to around 5
mcm, down from 9 mcm on Thursday.
'With no new cargoes observed for the terminal, reduced LNG
supply is expected to continue also in February. Langeled and
BBL (pipelines) are also flowing lower today,' the analysts
Further along the curve, traders said that lower output at
Norway's Troll gas field, which will last until early April,
would continue to support month-ahead prices.
March gas gained 0.35 pence to 65.60 pence.
Further-out gas prices were also supported by strong crude
oil, with the British front-season gas price rising to 63.35
pence, up from 62.80 on Thursday morning.
Brent crude was trading at $115.62 a barrel on Friday, and
earlier hit $115.91, its highest level in more than three
months, as escalating tension in the Middle East stoked supply
British over-the-counter (OTC) power prices rose day on day
on the back of fossil fuel plant outages, even though underlying
healthy supply margins kept prices comparatively low.
Day-ahead power traded at 48.63 pounds per megawatt-hour, up
around 0.68 pounds on the previous session.
(Reporting by John McGarrity, editing by William Hardy)
((firstname.lastname@example.org)(+44 207 542 4779)(Reuters
DEMAND AND SUPPLY
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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