LONDON: British wholesale gas prices fell on Thursday, trading at multi-year seasonal lows, as warm weather dampened demand and liquefied natural gas (LNG) sendout levels remained at elevated levels.
Day-ahead gas price fell 0.5 pence to 28.20 pence per therm by 0815 GMT.
Gas for immediate delivery dropped 0.75 pence to 28.50 p/therm.
Both contracts are trading at their lowest point since 2009 for this time of the year.
Temperature forecasts for Thursday were increased by 3.8 degrees Celsius to 15.7 degrees, far higher than average.
Sendout from LNG terminals is expected to fall on Thursday to 56 million cubic metres (mcm) but remains far above levels of the same time last year.
"The prices are going down -- there's just too much LNG," said one gas trader.
Two more LNG tankers are due to arrive on Sunday but other traders noted lower LNG sendout forecasts just as the weather is expected to turn colder.
"If more cargoes start coming here then prices have to go down. Otherwise, we might pause a bit here," another gas trader said.
The system was more or less balanced, with demand forecast at 199.2 mcm and supply seen at 201.9 mcm, according to National Grid data.
On the supply side, flows from the UK Continental Shelf were 7 mcm lower, due in part to maintenance work at the St Fergus terminal.
From Norway, gas supplies have increased by 3 mcm to 40 mcm although a number of planned works are ongoing, restricting flows now and throughout June.
The June contract was 0.3 pence lower at 29.45 pence per therm.
Day-ahead gas price at the Dutch TTF hub fell 0.1 euro to 11.65 euros per megawatt hour (MWh).
Benchmark Dec-19 EU carbon contract was 0.01 euro lower at 25.52 euros a tonne.
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