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Finance & Stock Market News
UK prompt gas softer ahead of terminal output boost
Mon, 30th Jul 2012 10:59
LONDON, July 30 (Reuters) - British prompt gas prices fell
slightly on Monday morning on the
from liquefied natural gas (LNG) terminals amid
heavier-than-normal deliveries this week.
Gas for Tuesday delivery fell 0.20 pence to
53.65 pence a therm and gas prices for the rest of the week shed
0.4- pence, down to 53.70 pence amid higher expected supplies.
Bucking the trend, gas for immediate delivery rose nearly
half a penny to 53.85 pence on the back of tightening North Sea
output and reduced deliveries from Norway.
The UK gas market was undersupplied by about 7 million cubic
meters per day, with demand pegged 27 percent below seasonal
normal levels at 174 mcm/day.
'The market expects South Hook LNG (terminal) to start
flowing more gas after maintenance capped flows until last week,
and because of more frequent shipments,' a gas trader from an
investment bank said.
Month-ahead gas also shed value, down 0.35 pence at 53.40
pence, potentially due to improving supply outlooks on LNG
shipments from Qatar as demand collapses in its main export
market in Asia.
'August gas is down because traders are closing futures
positions on the contract,' another trader said, ahead of the
contract's expiry on Wednesday.
LNG send-out is at 15 mcm/day, exclusively on the back of
output from the South Hook terminal.
Norwegian gas flows to Britain fell slightly on Monday
morning compared to Friday's average, while deliveries to
continental Europe were steady.
Flows via Norway's Langeled pipeline dipped to 27 mcm/day
while Vesterled transmitted around 14 mcm/day.
Analysts at Point Carbon say four Qatari cargoes arriving at
UK terminals this week may signal a pick up in deliveries.
'Isle of Grain has also received a cargo recently and can
also increase the send-outs this week with the right price
incentive,' Point Carbon said.
Inventories at the UK's biggest gas storage facility, Rough,
are 93 percent full, exceeding previous year levels. Point
Carbon estimates average injections into Rough at 10 mcm/day
over the next 10-days.
'With this injection rate, this facility will be about 97%
full by August 10,' it said.
In Britain's wholesale power market, prompt prices fell
slightly in line with gas market sentiment.
Day-ahead baseload power fell 50 pence to 41.20 pounds per
megawatt-hour (MWh).
Gas-fired generation grabbed the biggest share of the UK's
power mix, contributing 34.5 percent of overall electricity,
with coal not far behind at 33.9 percent, data from National
Grid showed.
(Reporting by Oleg Vukmanovic; editing by James Jukwey)
((Oleg.Vukmanovic@thomsonreuters.com)(44 207 542 0014)(Reuters
Messaging: oleg.vukmanovic.thomsonreuters.com@reuters.net))
((GAS-Please click on the following for information about UK and Belgian prices, field maintenance and field start-ups.
UK natural gas prices
Belgian natural gas prices
North Sea field start-ups
North Sea field maintenance
POWER
UK: baseload prices, outages
report
FRANCE: baseload prices, peak
market report, Powernext,
Spectron baseload, off peak
, peak
nuclear outages: report, offline
percentage, offline capacity (MW)
GERMANY: baseload prices, peak
outages, report
SWITZERLAND: outages, reservoir levels
NORDIC: report
EU CARBON PRICES SPEEDGUIDE:
(Xtra clients: Click on http://topnews.session.rservices.com to see Top News pages in multimedia Web format.)) )
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
slightly on Monday morning on the
back of higher expected output
from liquefied natural gas (LNG) terminals amid
heavier-than-normal deliveries this week.
Gas for Tuesday delivery fell 0.20 pence to
53.65 pence a therm and gas prices for the rest of the week shed
0.4- pence, down to 53.70 pence amid higher expected supplies.
Bucking the trend, gas for immediate delivery rose nearly
half a penny to 53.85 pence on the back of tightening North Sea
output and reduced deliveries from Norway.
The UK gas market was undersupplied by about 7 million cubic
meters per day, with demand pegged 27 percent below seasonal
normal levels at 174 mcm/day.
'The market expects South Hook LNG (terminal) to start
flowing more gas after maintenance capped flows until last week,
and because of more frequent shipments,' a gas trader from an
investment bank said.
Month-ahead gas also shed value, down 0.35 pence at 53.40
pence, potentially due to improving supply outlooks on LNG
shipments from Qatar as demand collapses in its main export
market in Asia.
'August gas is down because traders are closing futures
positions on the contract,' another trader said, ahead of the
contract's expiry on Wednesday.
LNG send-out is at 15 mcm/day, exclusively on the back of
output from the South Hook terminal.
Norwegian gas flows to Britain fell slightly on Monday
morning compared to Friday's average, while deliveries to
continental Europe were steady.
Flows via Norway's Langeled pipeline dipped to 27 mcm/day
while Vesterled transmitted around 14 mcm/day.
Analysts at Point Carbon say four Qatari cargoes arriving at
UK terminals this week may signal a pick up in deliveries.
'Isle of Grain has also received a cargo recently and can
also increase the send-outs this week with the right price
incentive,' Point Carbon said.
Inventories at the UK's biggest gas storage facility, Rough,
are 93 percent full, exceeding previous year levels. Point
Carbon estimates average injections into Rough at 10 mcm/day
over the next 10-days.
'With this injection rate, this facility will be about 97%
full by August 10,' it said.
In Britain's wholesale power market, prompt prices fell
slightly in line with gas market sentiment.
Day-ahead baseload power fell 50 pence to 41.20 pounds per
megawatt-hour (MWh).
Gas-fired generation grabbed the biggest share of the UK's
power mix, contributing 34.5 percent of overall electricity,
with coal not far behind at 33.9 percent, data from National
Grid showed.
(Reporting by Oleg Vukmanovic; editing by James Jukwey)
((Oleg.Vukmanovic@thomsonreuters.com)(44 207 542 0014)(Reuters
Messaging: oleg.vukmanovic.thomsonreuters.com@reuters.net))
((GAS-Please click on the following for information about UK and Belgian prices, field maintenance and field start-ups.
UK natural gas prices
Belgian natural gas prices
North Sea field start-ups
North Sea field maintenance
POWER
UK: baseload prices, outages
report
FRANCE: baseload prices, peak
market report, Powernext,
Spectron baseload, off peak
, peak
nuclear outages: report, offline
percentage, offline capacity (MW)
GERMANY: baseload prices, peak
outages, report
SWITZERLAND: outages, reservoir levels
NORDIC: report
EU CARBON PRICES SPEEDGUIDE:
(Xtra clients: Click on http://topnews.session.rservices.com to see Top News pages in multimedia Web format.)) )
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
