LONDON, April 29 (Reuters) - British prompt gas prices rose
on Monday morning as lower pipeline supplies from Norway left
the system undersupplied, meaning more liquefied natural gas
(LNG) will be used to balance the system, traders said.
Gas prices for within-day delivery were trading at 65.65
pence a therm at 1100 BST (1000 GMT) on Monday, up 0.35 pence
from the close on Friday, and hit an intraday high of 66.10 as
traders responded to an 11 mcm fall in flows of Norwegian gas to
That put within-day gas at an 0.8 pence premium to the May
contract, but traders said prompt prices would likely trade
higher without the extra supply that flowed from LNG terminals,
with the Al Karaana vessel expected to dock at South Hook on
'We are likely to see decent flows from South Hook and
storage nominations are up, which will help balance the system
and make up for shortfalls in Norwegian flows,' said a trader.
'The big question going forward is whether we see any more
downside in North Sea supply.'
Gas for day-ahead delivery was priced 0.15 pence higher at
Exports to Britain fell by 11 mcm to 71 mcm, as flows
through the Vesterled pipelined dropped to zero on Monday.
Norway's gas output could be reduced by 21 million cubic
metres per day until May 6 due to problems at Heimdal riser
platform, the country's gas system operator Gassco said on
Supplies from South Hook rose to 49 mcm on Monday from 40
mcm at the end of last week.
Britain's total gas demand is expected to be 241.9 million
cubic metres (mcm) on Monday, around 1 percent above the
seasonal norm, according to National Grid.
Flows were forecast at 233.7 mcm, leaving the system around
8 mcm short.
Analysts said the day-ahead contract is expected to trade
sideways as supply from the South Hook LNG terminal may remain
relatively high as two cargoes, the Mekaines and Zarga, are
expected to dock in Britain early next month.
Demand for gas is expected to remain fairly steady for the
next few days, traders said, as temperatures range between 4 and
16 degrees Celsius during this week, compared with Monday's
minimum temperature of 6 and maximum of 14 degrees.
In the power market, prices for baseload (24 hours) delivery
the next day rose by 1.40 pounds per megawatt-hour (MWh) between
Friday and Monday to 49.28 pounds per MWh.
($1 = 0.6550 British pounds)
(Reporting by John McGarrity; editing by Jason Neely)
((firstname.lastname@example.org)(+44 207 542 4779)(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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