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UK GAS-Winter prices rise on extended gas injection outage at Rough storage site
April 12, 2017 / 9:39 AM / 8 months ago

UK GAS-Winter prices rise on extended gas injection outage at Rough storage site

LONDON, April 12 (Reuters) - British winter gas prices rose on Wednesday morning after Centrica, Britain's largest gas storage facility operator, announced its Rough site will not be available for gas injections until at least the end of April next year. * Winter 2017 contract rose by 0.62 pence to 46.57 pence per therm at 0912 GMT. * Winter 2018 contract up 0.23 pence at 46.40 p/therm. * Centrica Storage Limited said Rough cannot safely restart injection operations in the 2017/18 storage year after different potential issues in a number of the wells. * The UK gas storage year runs from the start of May to the end of April. * "Curve prices are definitely up on Centrica and also bullish oil," a UK gas trader said. * The within-day contract rose by 0.45 pence to 38.45 p/therm. * However, the system was oversupplied by around 12 million cubic metres (mcm). Demand is forecast at 231.7 mcm and flows at 243.9 mcm/day, National Grid data shows. * Gas flows from Norway were 5 mcm higher at 335 mcm, as flows through the Langeled pipeline grew by 4 mcm compared to Tuesday. * Britain's Met Office forecast temperatures could reach as high as 15 degrees Celsius in the southeast of the country on Wednesday, but are expected to fall slightly to 12 degrees C on Thursday. * Peak wind power output is forecast at 7.7 gigawatts (GW), falling to 6.7 GW on Thursday, National Grid data shows. * In the Dutch gas market, day-ahead gas price at the TTF hub was up 0.05 euro at 15.70 euros per megawatt hour. * Benchmark Dec-17 EU carbon contract inched up by 0.03 euro to 4.90 euros per tonne. * Thomson Reuters analyst view: here (Reporting by Lefteris Karagiannopoulos; editing by Nina Chestney)

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