UK GAS-Prices up on Norway strike threat

British wholesale gas prices rose on Friday, supported by a potential strike in Norway that could see supplies drop.

Gas for day-ahead delivery rose 1.10 pence to 41.50 pence per therm by 0945 GMT, its highest level in a month.

Gas for weekend delivery was up 1.50 pence at 41.50 pence per therm.

The December contract rose 1.05 pence to 41.20 pence per therm, its highest level since Nov. 16.

The risk of a strike shutting down Norway's Nyhamna gas processing plant late on Friday was the key price driver on Friday morning, a trader said.

Operator Gassco told Reuters on Friday morning it was still making plans for shutting down Nyhamna and would update the market in the course of the day.

An extended strike at the plant, which receives gas from the large Aasta Hansteen and Ormen Lange fields, could cut Norwegian flows by around 60 million cubic metres per day, analysts at Refinitiv said in a daily report.

The outlook for the day-ahead was bearish despite a short British gas system on Friday, they added, citing lower demand and increased supply from the UK continental shelf.

The system was under-supplied by around 8 million cubic metres (mcm) on Friday morning, with demand forecast at 318 mcm and flows at 310 mcm/day, according to National Grid data.

Local distribution zone demand and gas for power demand for Monday is expected to be 11 mcm/day and 12 mcm/day lower respectively, according to Refinitiv data.

Peak wind generation is forecast at 2.1 gigawatts (GW) on Friday and 4.9 GW on Monday, out of total metered capacity of around 18 GW, Elexon data shows.

The December price at the Dutch TTF hub rose by 0.38 euro to 14.48 euros per megawatt hour.

The benchmark Dec. 20 EU carbon contract was 0.31 euro lower at 28.41 euros a tonne, its highest level since Sept. 18.