UK markets open in 1 hour 43 minutes
  • NIKKEI 225

    +17.48 (+0.06%)

    +3.30 (+0.02%)

    -0.53 (-0.59%)

    -2.30 (-0.13%)
  • DOW

    +151.39 (+0.45%)

    -854.39 (-4.12%)
  • CMC Crypto 200

    -24.05 (-4.07%)
  • ^IXIC

    +80.87 (+0.62%)
  • ^FTAS

    +5.19 (+0.13%)

UK GAS-Prices decline on strong domestic production

* Day-ahead gas dips 0.30 pence to 28.50 pence/therm

* Norwegian flows via Langeled pipeline fall to zero

Aug 30 (Reuters) - British wholesale gas prices fell on Tuesday as strong domestic supply outweighed the impact of a sharp reduction in Norwegian imports.

In thin trade, British day-ahead gas prices fell by 0.30 pence to 28.50 pence per therm by 0929 GMT, according to composite broker price data on Thomson Reuters Eikon.

The within-day and working days next week spot gas contracts, which typically see high turnover, had not traded by the time of writing.

Britain's gas system was oversupplied by 19 million cubic metres/day (mcm) with demand forecast to be 169.1 mcm/day, according to National Grid (LSE: NG.L - news) data.

Norwegian flows through the Langeled pipeline dropped to zero at 0400 GMT from around 17 mcm/day overnight, following a planned shutdown at the Easington gas terminal in Britain which receives Langeled supplies.

The terminal is due to restart on Wednesday.

Despite having less Norwegian supply, UK gas prices still slid as offshore fields pumped ample volumes into terminals.

UK Continental Shelf output was high at 153 mcm/day.

"Net (LSE: 0LN0.L - news) withdrawals from storage of 12 mcm are also expected, leaving the system currently expected to close the session 19 mcm long, though physical deliveries are yet to begin which could see this surplus shrink should nominations reduce," Wingas UK head of trading Marcel Boonaert said.

Maintenance at the Theddlethorpe terminal from Sept 1-16 is expected to reduce supplies by around 7 mcm/day.

Contracts across the curve were also lower.

September gas fell by 0.28 pence to 29.45 pence per therm, while gas for Winter 2016 declined by 0.20 pence to 40.30 pence per therm.

Dutch day-ahead gas prices at the TTF hub declined by 0.37 euros to 11.68 euros per megawatt-hour.

European front-year carbon allowances firmed by 0.06 euro to 4.76 euros a tonne. (Reporting by Oleg Vukmanovic; Editing by Nina Chestney)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting