UK GAS-Gas prices decline on warmer weather

LONDON: British wholesale gas prices declined on Thursday afternoon on expectations of warmer weather for the next week.

Gas for immediate delivery was 0.20 pence lower at 39.70 pence per therm at 1231 GMT, having risen to 40.35 pence in earlier trade.

Gas for day-ahead delivery was down 1.00 pence at 39.00 p/therm.

Above-normal temperatures are expected in Britain over the coming week which is curbing demand, traders said.

However, from mid-week next week, temperatures are likely to fall to near or below normal values, said Thomson Reuters meteorologist George Muller.

The gas system was still undersupplied by around 9 million cubic metres (mc), with flows at 192 mcm/day and demand at almost 201 mc, National Grid data shows.

Britain's Dimlington terminal is experiencing an unplanned outage after a trip, which has reduced its flows to the national transmission system to zero.

Bacton Shell flows are now at nearly 7 mcm/day after being at zero earlier, according to National Grid data. Shell was not immediately available to comment.

Flows from Norway through the Langeled pipeline are lower due to the full shutdown of the Ormen Lange gas field.

In the Dutch gas market, the day-ahead TTF gas price was down by 0.37 euro at 15.58 euros per megawatt hour.

Benchmark Dec-17 EU carbon contract was down 0.08 euro at 4.37 euros a tonne.