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UK GAS-Prices rise on lower Norwegian flows due to outages

Tue, 14th Sep 2021 08:36

LONDON, Sept 14 (Reuters) - British and European wholesale
gas prices rose on Tuesday morning as heavy maintenance affected
Norwegian supply.

* The day-ahead contract rose by 5.75 pence to
160.75
pence per therm by 0731 GMT.

* The October price rose by 0.82 pence to
154.20
p/therm.

* Flows from Norway to Britain have fallen to 43 million
cubic
metres (mcm) due to maintenance outages.

* "Today will be the most impacted day for planned capacity
constraints for the remainder of the year," said Wayne Bryan,
head of gas research at Refinitiv.

* Arrivals of liquefied natural gas to north-west Europe
also
remain weak.

* Britain's gas system was under-supplied by around 11 mcm,
with
demand forecast at 152 mcm and flows at 141 mcm/day, National
Grid data showed.

* Generally, global gas markets remain bullish.

* "We are witnessing record natural gas prices and we’re
still not
yet in the winter period," said analysts at Bernstein.

* Last year's August storage levels were 23 billion cubic
metres
higher than this year's, which helped to prevent price spikes in
the winter.

* "If we get a colder than average winter this year and we
witness
any supply disruptions at all, then much higher gas prices will
materialize given 45% of European natural gas demand is
residential and heating," the analysts added.

* The Dutch TTF October contract declined by
1.00
euro to 61.00 euros per megawatt hour, having hit an intra-day
high of 65.00 euros in earlier trade.

* The benchmark Dec-21 EU carbon contract was up
by 0.41
euro at 61.48 euros a tonne.
(Reporting by Nina Chestney)

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