UK gas down on diverted LNG arrival, milder weather

LONDON, Nov 12 (Reuters) - British wholesale gas prices fell early Thursday on lower demand, redirected liquefied natural gas (LNG) cargo, and full gas storage levels going into winter.

Gas for Friday eased 0.40 pence to 26.75 pence per therm ($4.434 per mmbtu), compared with day-ahead contracts late Wednesday.

"Demand's not there, and LNG which was diverted is now coming in," one gas trader said. "It's also going to be warmer than normal between now and next week."

The Neo Energy LNG tanker, which was taken off the Milford Haven arrivals schedule on Monday, is now expected to arrive at Dragon LNG terminal on Nov. 14. [ID:nLC394353]

For a list of LNG cargoes scheduled to arrive in Britain, click here: [ID:nL3572116]

Temperatures in Britain were forecast to pick up over the next few days, the Met Office website showed, cutting gas demand for heating.

And variable to warmer weather was expected across northwest Europe, while northeast Europe was also forecast to become milder into next week. [ID:nDTN426]

Meanwhile, prices along the curve softened following Centrica's announcement that Rough, Britain's largest gas storage facility, was at the highest ever recorded storage stock levels going into winter. [ID:nBw116034a]

December was down 0.65 pence to 30.95 pence, while January contracts were trading 0.90 pence lower at 34.50 pence and 2010 first quarter fell 0.80 pence to 34.40 pence.