UK GAS-Lower imports and undersupply lift prices

LONDON, May 6 (Reuters) - British wholesale gas prices rose
on Thursday morning as lower imports and strong demand left the
market undersupplied.

* The within-day contract was up 2.6 pence at
68
p/therm by 0933 GMT.

* The day-ahead contract was up 1.5 pence at 67
p/therm.

* Traders said lower supplies of gas from Europe, combined
with a
dip in flows from the country’s liquefied natural gas (LNG)
terminals, had left the market undersupplied, boosting prices.

* Imports from the Netherlands through the BBL pipeline were
at
zero on Thursday, down 12 million cubic metres (mcm) from the
previous day, Refinitiv Eikon data showed, as the spread between
Dutch and British gas prices narrowed, making it less economic
to export to Britain.

* “The narrowing of the NBP-TTF (British-Dutch gas)
day-ahead
spread has also seen BBL flows cease and IUK adjust lower,
which in tandem with weak wind speeds and low thermal
availability sees gas demand remain strong,” Refinitiv analysts
said in a daily research note.

* Imports from Belgium through the IUK pipeline were at 4
mcm,
down from 10 mcm the previous day, Refinitiv Eikon data showed.

* Flows from Britain's LNG terminals were 5 mcm lower than
on
Wednesday, at 36 mcm, the data showed.

* Britain’s gas system was undersupplied, with demand
forecast at
248.7 mcm/day and flows at 224.5 mcm/day, National Grid data
showed.

* Prices also rose further along the curve, with the June
contract up 1.45 pence at 63 p/therm.

* The day-ahead gas price at the Dutch TTF hub
was up
0.52 euros at 25.20 per megawatt hour.

* The benchmark Dec-21 EU carbon contract was up
five
euro cents at 49.50 euros a tonne.
(Reporting by Susanna Twidale
Editing by David Goodman
)

National Grid