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UK GAS-Spot price slumps on Norway supply rebound, outlook tightens
September 4, 2015 / 11:49 AM / 2 years ago

UK GAS-Spot price slumps on Norway supply rebound, outlook tightens

* Norwegian gas flows resume after outage

* Within-day gas prices down 0.8 pence

Sept 4 (Reuters) - British gas prices for instant delivery fell on Friday, pressured by an oversupplied network after Norwegian flows resumed, but contracts for next week firmed as traders expected the supplies to be diverted to Germany.

Gas for immediate delivery fell 0.8 pence to 41.50 pence per therm by 1110 GMT, while day-ahead prices posted gains in early trading before moving back in line with Thursday’s close.

Weekend gas prices rose 0.35 pence to 41.35 pence per therm.

UK gas demand was pegged at 198.8 million cubic metres (mcm) per day, with supply edging ahead to 196.3 mcm per day, National Grid data showed.

A short-lived outage at the North Sea’s Sleipner gas hub on Thursday severed flows from Norway, Britain’s main gas supplier, reversing what began as a bearish trading session to send prices higher.

Though supplies recovered late on Thursday, UK prices for next week made early gains on Friday on expectations that Norwegian gas flows would start to be diverted from the UK to Germany.

“The day-ahead and working-days contracts for next week are firming from yesterday’s close in line with expected lower (Norwegian) Langeled supply,” said Marcel Boonaert, head of trading and portfolio at Wingas UK.

Ongoing maintenance at the Centrica-operated Morecambe gas fields in the Irish Sea kept supplies into the Barrow terminal at zero, while flows into Britain’s Theddlethorpe gas terminal were also halted by planned offshore maintenance.

Further along the curve, prices for winter delivery fell to 44.45 pence per therm, down 0.3 pence from the previous trading session.

In the Dutch TTF gas market, prices were lower across the board. Day-ahead TTF gas lost 0.35 euros to 19.75 euros per megawatt hour.

In Europe’s carbon market, benchmark EU Allowances (EUA) eased by 0.05 euros to 8.13 euros a tonne. (Reporting by Oleg Vukmanovic in Milan; Editing by David Goodman)

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