UK GAS-Pipeline outages, crude oil, Asian LNG gains lift prices
LONDON, May 22 (Reuters) - British wholesale gas contracts rose on Tuesday, ahead of a planned shutdown of an important Norwegian supply route this week and potentially higher exports to Europe until mid-June.
* Gas for immediate delivery rose by 0.75 pence to 58.00 pence per therm at 0845 GMT, even though the system was oversupplied
* Gas for Wednesday rose by 1.90 pence to 58.90 p/therm
* June gas was 1.45 pence higher at 57.95 p/therm
* Analysts attributed higher gas prices to the planned shutdown of Norway's Langeled pipeline to Britain from Thursday which will see less gas arriving in Britain.
* The long-planned closure of the InterconnectorUK (IUK) pipeline between Britain and Belgium from mid-June could also be incentivising European consumers to boost imports and replenish reserves, analysts at Thomson Reuters (Dusseldorf: TOC.DU - news) said.
* "Gas import demand from the Netherlands is likely to drive UK prompt gas prices up in the first half of June and encourage heavy mid-range storage withdrawals," said Katarzyna Piaskowska, Thomson Reuters gas analyst
* A senior analyst at a major European utility believed the Norwegian pipeline outage was the main factor driving gas prices higher.
* "It seems like the IUK maintenance next month is a source of concern but the shutdown was planned a long time ago so I'm not convinced," he added, saying that rising crude oil prices are also setting the tone for forward gas contracts.
* Brent crude oil is again edging toward $80 a barrel on concerns Venezuela's oil output could drop further and potential U.S. sanctions on the OPEC member.
* Britain's gas system was oversupplied by 5.1 million cubic metres/day (mcm/day) with demand estimated at 178.3 mcm/day and supply at 183.4 mcm/day, National Grid (LSE: NG.L - news) data showed
* Average temperatures this week are on a rising trend and set to top 17 degrees Celsius by the weekend, Thomson Reuters Eikon data shows
* Therefore, heating demand is forecast 3 mcm lower compared over the weekend.
* Exports through the IUK pipeline to continental Europe are 2 mcm higher than Monday at 36 mcm.
* Sparse liquefied natural gas (LNG) deliveries into Britain are also adding support to prices. Rising Asian spot LNG prices (LNG-AS) this month will only make it more difficult for Britain to attract supply, a factor that could support front-month prices.
* Day-ahead gas at the Dutch TTF hub rose by 0.47 euro to 22.70 euros per megawatt hour
* The benchmark Dec (Shanghai: 600875.SS - news) -18 EU carbon contract was 0.30 euro higher at 15.87 euros a tonne, still at a seven-year high (Reporting by Oleg Vukmanovic; editing by Nina Chestney)