3 Min Read
* 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.
The BW Suez Everett offloaded gas at the Isle of Grain terminal on Saturday, operator National Grid said.
Two more LNG tankers are expected to arrive in Britain on Tuesday. [LNG/TKUK]
Gas demand on Monday was nearly 50 mcm above normal levels as cold weather boosted heating demand in Britain and import demand from Belgium continued to be strong.
November gas traded at 47.40 pounds ($7.40 pe mmBtu), up 0.10 from the previous session.
In the over-the-counter (OTC) power market, prices were softer on Monday morning, defying impact from a return to full service of the UK-France power interconnector.
Power for Tuesday delivery fell to 44.20 pounds per megawatt-hour (MWh), compared with a high of 44.70 pounds reached on Friday.
The UK-France power cable was exporting near its full 2,000 MW capacity early on Monday, National Grid data showed.
Power output from both units at GDF Suez's Teesside combined-cycle gas turbine plant was at zero early on Monday, but the operator refused to comment on the station's operations.
EDF Energy's Hartlepool nuclear plant remained out of service after an unplanned outage on Thursday.
The N2EX power exchange set the spot price in line with the OTC market at 44.36 pounds per MWh.
Reporting by Karolin Schaps, editing by Jane Baird