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UK GAS-Within-day prices ease on lower demand, healthy LNG supply

Fri, 23rd May 2014 08:26

* Demand remains below seasonal norm

* Another LNG cargo to arrive on May 30

LONDON, May 23 (Reuters) - British gas prices for immediatedelivery eased on Friday morning as weak demand and healthysupplies of liquefied natural gas (LNG) offset less Norwegianpipeline gas imports.

Gas prices for delivery within the day were down by 0.15pence to 45.65 pence a therm by 0815 GMT, while prices fordelivery the next day were trading at 45.45 pence per therm, 0.05 pence up since their last close.

National Grid data showed that Britain's gas demand was onlyexpected to be around 179 mcm on Friday, 8 percent below theseasonal norm, while supplies were forecasted at 177 mcm,leaving the system close to balanced.

Meteorologists said they expected average temperatures inBritain to rise above the seasonal norm of around 12 degreesCelsius on Friday, and continue rising steadily to 13-14 degreestowards the end of the month, after a small dip on Saturday.

Norwegian gas flows through the Langeled pipeline, Britain'smain subsea gas import route, were at 7 mcm per day on Fridaymorning, just a tenth of its full capacity.

Imports from Norway were expected to remain low until nextThursday due to maintenance at Royal Dutch Shell's Ormen Lange field, the second biggest on the Norwegiancontinental shelf.

Lower deliveries from Norway were offset by LNG suppliesfrom Qatar. Four LNG cargoes are arriving to South Hook betweenMay 22 and 28, with daily gas sendouts estimated at 50 mcm.

"This is sufficient to counterbalance the impact ofNorwegian maintenance and limit the level of storagewithdrawals," said Oliver Sanderson, an analyst at ThomsonReuters Point Carbon.

Another LNG cargo from Qatar is expected to arrive to theSouth Hook terminal on May 30, the port's datashowed. (Editing by William Hardy)

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