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Markets

UK gas prices firm in undersupplied system

Published Updated

imageLONDON: Prompt natural gas prices in Britain rose on Tuesday, supported by an undersupplied system as imports from Norway dipped.

Prices for next-day delivery were 0.30 pence higher at 47.50 pence per therm at 0833 GMT.

The gas system was around 18 million cubic metres (mcm) undersupplied, with flows forecast at 285 mcm/day and demand at 303 mcm, according to National Grid data.

Demand was slightly above the seasonal norm of around 298 mcm.

An ongoing outage curbed deliveries into the Entry Segal pipeline, while flows from Norway's Langeled pipeline were also lower, reducing imports.

"Langeled flows are substantially down as the Continent is taking more Norwegian gas," Thomson Reuters Point Carbon analysts said.

Meteorologists forecast higher than normal temperatures for this time of year, lasting at least for the coming week.

Day-ahead TTF gas was up 0.2 euros at 20.00 euros per megawatt hour.

In Europe's carbon market, benchmark EU Allowances (EUA) were up 0.01 euro at 7.00 euros per tonne.

Copyright Reuters, 2014

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