LONDON: Natural gas prices in Britain rose on Tuesday morning as maintenance at Shell's St Fergus terminal contributed to an undersupplied system.
Prices for within-day delivery were trading at 50.40 pence per therm at 0909 GMT, up 1.40 pence since their last settlement. Prices for delivery on Wednesday were up 1.15 pence at 50.00 pence per therm.
With supply flows at about 168.9 million cubic metres (mcm) per day on Tuesday and demand expected to be about 176.4 mcm, the system was 7.5 mcm undersupplied, National Grid data showed.
The system was short partly due to a reduction in volumes through Shell's St Fergus processing terminal.
National Grid data showed volumes fell to zero early on Tuesday morning from more than 20 mcm/day on Monday evening.
Shell said on its website it extended a 12 mcm/day capacity reduction at St Fergus until the week commencing Sept. 29. A spokeswoman declined to comment on the discrepancy in the loss of volume.
Meanwhile ConocoPhillips' Southern Area Facilities gas fields are undergoing maintenance, which has reduced receipts of gas to the Theddlethorpe terminal by around 10 mcm.
Further along the curve, gas for November delivery was up 0.20 pence at 59.75 pence per therm and the Winter 2014 contract was up 0.10 pence at 60.85 pence.
Traders said curve prices were buoyed by ongoing fears about the delivery of Russian gas via Ukraine to Europe, as some countries, such as Slovakia, have received less gas than usual this week.
Nominations for Russian gas entering Slovakia from Ukraine were set at 49.6 mcm for a second day in a row on Tuesday, below daily amounts seen last week, data from Slovak pipeline operator Eustream showed.
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