UK gas rises as storage input expected to fall

Mon Oct 25, 2010 9:24am GMT
 

* Gas flows from Dragon fall to zero

* Gas demand rises above average

* Hartlepool 2 nuclear plant remains off-line

LONDON, Oct 25 (Reuters) - British prompt gas prices firmed early on Monday as supply from liquefied natural gas (LNG) terminals dropped and as traders expected lower withdrawals from storage sites would reduce supply later in the session.

Gas for delivery on Tuesday rose to 47.95 pence per therm, up 0.45 pence from Friday's session, while gas for immediate delivery was 0.55 higher at 48.05 pence.

"The length (abundant supply available) is caused largely by storage withdrawals, which don't make sense, so they will be priced off pretty quickly," said a British gas trader.

The market was over supplied by around 13 million cubic metres (mcm) early on Monday, and Rough, Aldbrough and Hornsea storage sites contributed around 48 mcm, National Grid data showed.

Supply from Britain's Dragon and Isle of Grain LNG terminals dropped by around 15 mcm. Input from Dragon fell to zero at around 0800 GMT on Monday, according to National Grid.   Continued...

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.2865
Euro USD =1.0905
Rand USD =0.0757