LONDON: Prompt natural gas prices in Britain rose early on Tuesday as demand narrowly outstripped expected supply with a slight fall in Norwegian flows.
Winter prices, however, were weaker, as hopes of a possible agreement between Russia and Ukraine in their dispute over gas supplies weighed on the market.
Gas prices for delivery within the day were trading at 51.30 pence per therm at 0935 GMT, up 1.05 pence since their last close, and prices for delivery on Wednesday were up 1.20 pence to 51.20 pence a therm.
"The currently short system is offering additional support to prompt contracts," said Marcel Boonaert, head of trading and portfolio at gas supply company Wingas UK.
Natural gas exports from Norway, Britain's biggest gas supplier, fell on Tuesday morning on lower deliveries, partly offset by small increases to Germany and France, data from gas system operator Gassco showed.
Expectations that a solution to Russia's gas dispute over Ukraine's debts could be reached in the coming days put downward pressure on winter gas deliveries, which fell 0.28 pence to 57.37 pence a therm.
Russian energy Minister Alexander Novak said on Tuesday he hoped Russia and Ukraine would this week settle their remaining differences over a timetable for Moscow to redeem natural gas debts from Kiev.
Novak reiterated that Kiev must repay at least part of its $5.3 billion gas debt before Russia's state-owned gas producer, Gazprom, resumes gas supplies to Ukraine.
"The EU-brokered talks between Russian gas supplier Gazprom and Ukrainian gas company Naftogaz might have the potential to bear some fruit," analysts at Energy Aspects said in a note.
"While details are still emerging, the EU proposed an interim deal that would hold over the coming winter months, which was nominally accepted by negotiators on both sides, and publicly endorsed by Russia."
Britain's 550-megawatt Dungeness B-22 nuclear reactor is expected to return to the power grid on Oct. 1, operator EDF Energy said on Tuesday.
Comments
Comments are closed for this article.