UK GAS-Prices rise on reduced domestic gas production

Mon Jul 14, 2014 10:55am GMT
 

* Day-ahead prices rise 6 pct to 36.5 pence/therm

* Receipts from UKCS to St Fergus terminal are down

* Total says unplanned offshore outage caused reduction (Updates throughout)

LONDON, July 14 (Reuters) - Wholesale natural gas prices in Britain rose on Monday morning due to undersupply caused by a drop in the amount of gas received by Total's St Fergus gas terminal from the UK Continental Shelf (UKCS).

Prices for delivery on Tuesday were up 2.10 pence at 36.50 pence per therm by 1047 GMT, or 6 percent higher than the previous settlement.

Prices for immediate delivery were 0.90 pence higher at 36.70 pence per therm.

Britain's system was undersupplied by around 20 million cubic metres (mcm) of gas on Monday, according to National Grid data. Demand was forecast at 178 mcm, while supply was seen at 158 mcm.

The undersupply was mainly due to a decrease in gas received from the UK Continental Shelf by Total E&P UK's St Fergus gas terminal, on the northeast coast of Scotland.

"Total E&P UK can confirm there was an unplanned outage offshore resulting in low production at the St Fergus gas terminal over the weekend," a spokeswoman for the company told Reuters.   Continued...

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