LONDON: British prompt gas prices fell on Monday as above-average temperatures weighed on demand, while strong flows from Norway and imports from Belgium kept the system well supplied.
Day-ahead gas prices shed 0.70 pence to 67.20 pence per therm, with average temperatures across Britain at least 2 degrees Celsius than usual for this time of year.
The milder conditions weighed on gas demand, which National Grid data pegged 13 percent lower than the seasonal norm, with Britain's gas market oversupplied by 9 million cubic metres/day (mcm).
The South Hook LNG terminal pumped around 5 mcm into the system while withdrawals from underground storage sites ceased due to benign weather conditions and ample supply.
Norway exports more gas to Britain with 27 mcm arriving via the Vesterled pipeline, up from 15 mcm on Friday, while the Langeled pipeline - Norway's main import link with the UK, supplied 72 mcm.
Domestic gas output levels also rose to 146 mcm from 132 mcm on Friday, according to analysts at Thomson Reuters Point Carbon.
Supplies from Belgium peaked at around 27 mcm overnight before steadying at around 14 mcm during the morning.
"Norwegian gas production increased over weekend and this seems to be a reason for higher Vesterled flows into the UK," the analysts said.
At 0958 GMT gas prices for working days this week fell 1.80 pence to 67 pence.
Summer 2014 gas shed 0.10 pence at 65 pence per therm, taking cues from the weak prompt market.
British power prices also fell, with baseload day-ahead power down 85 pence to 45.65 pounds per megawatt-hour.
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