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Markets

UK GAS-Prompt prices nudge higher as outages curb supply

Published Updated

imageLONDON: British prompt gas prices rose on Tuesday morning, shrugging off warmer weather as lower imports from Norway curbed supply.

Gas for within-day delivery fetched 37.60 pence per therm at 0916 GMT, up 0.05 pence since the last settlement.

Gas for delivery on Wednesday rose 0.10 pence to 37.50 pence per therm. .

An unplanned outage at Norway's Kvitebjorn gas field cut output by 21.2 million cubic metres (mcm) a day on Tuesday, operator Gassco said in a market update.

Another unplanned outage at Norway's Valemon gas field cut supply by 10.5 mcm, Gassco said.

Imports from Norway via the Langeled pipeline, Britain's main sub-sea gas import route, were about 60 mcm by 0900 GMT on Tuesday, National Grid data showed, down from around 70 mcm the previous day.

Meanwhile Britain's domestic gas output dipped because of an outage at the Teesside pas processing plant, cutting flows by about 62 percent on Tuesday, operator TGPP said.

Traders said the supply cuts helped to offset warm temperatures forecast across Britain for the next few days.

Britain's Met office said that temperatures would reach 7-11 degrees Celsius on Tuesday, compared with temperatures below freezing in some parts of the country over the past few days.

Further along the curve, the 2016 first-quarter contract edged 0.25 pence higher to 37.80 pence per therm.

In the Netherlands, the day-ahead gas price at the TTF hub slipped 0.02 euros to 17.58 euros per megawatt-hour.

In Europe's carbon market, the front-year EU Allowance (EUA) price rose 0.06 euros to 8.62 euros a tonne.

Copyright Reuters, 2015

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