LONDON: Wholesale natural gas prices in Britain fell on Wednesday morning due to oversupply, eroding gains made over the previous two days.
Gas for delivery on Thursday was trading at 47.00 pence per therm by 0807 GMT, down 1.35 pence or 2.79 percent from the previous close, while gas for immediate delivery fell by 2.50 pence or 5 percent to 47.50 pence per therm.
Britain's gas system was over-supplied by 6.4 million cubic metres (mcm), data from National Grid showed, as flows were forecast to be 175.2 mcm and demand was seen at 168.8 mcm.
Flows of gas through the Langeled pipeline from Norway have resumed after maintenance ended at the Easington terminal on the east Yorkshire coast.
The southern leg of the pipeline feeds into the terminal, which processes gas and liquids from the North Sea.
Flows from the Netherlands via the BBL pipeline were also higher - at 24 mcm/day on Wednesday, compared to an average of 10 mcm/day on Tuesday.
Domestic gas production, however, has fallen due to a planned outage at the Southern Area Facilities, operated by ConocoPhillips, which started on Tuesday and is scheduled to go on until Sept. 23.
UK gas prices had risen this week due to a tight system and on fears that there will be a Russian gas supply cut to Europe. By the end of trade on Tuesday, the prompt contract had gained 6.5 percent since Friday's close.
On Wednesday morning, Ukraine's President Poroshenko said that he had agreed with President Vladimir Putin on a permanent ceasefire in the Donbass region of eastern Ukraine.
Further along the gas curve, gas for delivery in the winter 2014-2015 season fell by 1.65 pence or 2.75 percent to 58.35 pence per therm.
In Britain's power market, prices also fell. Day-ahead baseload electricity decreased by 1.80 pounds at 43.20 pounds per megawatt-hour.
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