UK GAS-Prices down on ample supply, shrug off sanctions

Tue Apr 29, 2014 8:40am GMT
 

* Traders confident of ample supply

* Sanctions on Russian energy exports unlikely - analysts

LONDON, April 29 (Reuters) - British prompt gas prices declined on Tuesday, with traders confident of ample supplies and sanctions on Russian energy exports deemed unlikely.

Gas for delivery on Wednesday fell 0.55 pence to 48.05 pence per therm by 0735 GMT, while gas for immediate delivery was down 0.60 pence at 48.20 pence per therm.

Gas flows of around 198 million cubic metres (mcm) were slightly under forecast demand of around 200 mcm, National Grid data showed.

Two liquefied natural gas tankers are expected to arrive in Britain on Tuesday, which should boost supply.

"The downward shift looks to be continuing today, the balanced system and confidence in supplies seeing prompt contracts offered over 0.50 pence lower," a gas trader said.

Further along the curve, gas for delivery in June was down 0.78 pence at 47.50 pence per therm. Gas for delivery in the third quarter was 0.65 pence lower at 49.65 pence per therm.

British gas prices could fall further due to healthy injection rates into storage, analysts at Energy Aspects said.   Continued...

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