LONDON: Prompt natural gas prices in Britain eased on Monday as forecasts for mild weather offset a fall in gas flows.
Prices for next-day delivery edged down 0.45 pence to 54.10 pence per therm at 0956 GMT.
Meteorologists forecast temperatures for the remainder of the week as above normal for this time of year, in line with longer range forecasts for a milder than average December and January.
Unplanned outages at St. Fergus and Kollsnes reduced gas flows to Britain on Monday, leaving the gas system 17 million cubic metres undersupplied, with flows forecast at 280 mcm/day and demand at 297 mcm, according to National Grid data.
An unplanned outage at Total's TOTF.PA St. Fergus gas terminal cut production by an estimated 8 million cubic metres per day (mcm/d).
Meanwhile Norway's gas exports to Britain fell on Monday from Friday due to an unexpected outage at Kollsnes gas processing plant.
Confirmation of two liquefied natural gas (LNG) tankers due to arrive in the UK in the coming week helped ease the outlook for supply.
"An upward revision to the temperature forecast for the rest of the week, alongside the confirmation of the two additional LNG cargoes has seen prompt contracts lose value at the open, despite the tight system and unplanned outages," said Marcel Boonaert, head of trading at gas supply company Wingas UK.
Day-ahead TTF gas was down 0.19 euros at 22.58 euros per megawatt hour.
In Europe's carbon market, benchmark EU Allowances (EUA) were down 0.05 euro at 6.61 euros per tonne.
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