LONDON: Natural gas prices in Britain rose slightly on Tuesday morning as colder weather and a drop in flows via the Langeled pipeline from Norway added to market tightness.
Prices for within-day delivery were trading at 43 pence per therm at 0823 GMT, up 0.25 pence since their last settlement. Prices for delivery on Wednesday were up 0.1 pence at 42.9 pence.
The market was seen 12.5 million cubic metres (mcm) undersupplied, with supply flows forecast at 151.1 million cubic metres (mcm) per day and demand seen at 163.6 mcm, National Grid data showed.
Further along the curve, gas for September delivery was up 0.05 pence at 42.8 pence per therm.
Temperatures on Tuesday were seen more than 3 degrees Celsius below seasonal averages, Thomson Reuters Point Carbon data showed.
Analysts saw potential for higher prices because a rise in continental demand would reduce Norwegian gas available for Britain and is likely boost UK storage withdrawals.
Nominations on Norway's Langeled pipeline were at 12 mcm, down from 27 mcm a day earlier.
Significantly tight intra-day market should lead to storage withdrawals of about 20 mcm, driving up all prompt contracts, analysts at Thomson Reuters Point Carbon said.
Capping gains were signs of increased output from the the British North Sea after maintenance.
Point Carbon analysts forecast 85 mcm in such supply for Tuesday, rising to 90 mcm Wednesday.
"Despite support from the short system this morning, prompt prices have ticked up only marginally. Downwards momentum continues to direct prices across the near curve," one trader said.
In Britain's power market, day-ahead baseload delivery was trading at 39.75 pounds per megawatt hour, up 1 pounds, or almost 2.6 percent.
Britain has almost 3,000 megawatts (MW) in nuclear capacity offline, about a third of its of total.
Wind power output in Britain was slightly lower on Tuesday, slipping to 3,100 MW from 3,800 MW a day earlier, National Grid data showed.
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