LONDON, March 11 - British gas prices fell on early Thursday trade, with lower demand due to milder weather offsetting reduced Norwegian supply resulting from a power outage at Ormen Lange gas field.
Gas for Friday was 33.60 pence per therm ($5.013 per mmbtu) at 1042 GMT, down 2.55 pence compared to day-ahead contracts on Wednesday.
Gas for Thursday was down at 36 pence from 41 pence compared with within-day contracts in the previous session, while April eased 0.15 pence at 29.85 pence.
"Everything's held up on Norwegian flows, but the weather is milder than it has been. We just have to get through this spell of Ormen Lange being down and the system being short," one gas trader said.
National Grid forecast Thursday gas demand to be 365 million cubic metres (mcm) a day due to milder weather, around 35 mcm/day lower than for Wednesday demand.
Dutch flows via the BBL pipeline were also up to 29 mcm/day after falling to zero briefly on the previous day due to an electrical fault at the Bacton receiving gas terminal.
But Norwegian flow via the Langeled pipeline was still around 42 mcm/day compared to its capacity of 70 mcm/day after a power outage disrupted production at Shell's (RDSa.L) large Ormen Lange gas field that feeds into Langled. [ID:nLDE62A0E8]
But more supply was expected, with another liquefied natural gas (LNG) tanker due at Milford Haven in south Wales next week. [ID:nWLB9794]
For a list of LNG tankers expected to arrive in Britain and Belgium, please click here: [ID:nLDE6180CW]
Along the curve, summer 2010 lost 0.10 pence to 29.50 pence while winter 2010 was little-changed at 40.80 pence.
In the over-the-counter power market, baseload electricity for Friday was 34.70 pounds per megawatt hour, down 80 pence compared with day-ahead contracts on Wednesday.
Friday prices -- usually softer due to lower industrial demand as factories shut for the weekend -- were also pulled down by warmer weather and gas falling.
"Prompt traded up to 35.40 pounds earlier but then back to the level it is now, after gas traded down," one power dealer said.
April and May baseload electricity contracts were flat at 34.20 pounds and 33.90 pounds respectively.
The day-ahead auction price on Britain's N2EX wholesale power exchange was set at 34.96 pounds for Friday, compared with 36.07 pounds for Thursday baseload power.
Gas for Friday was 33.60 pence per therm ($5.013 per mmbtu) at 1042 GMT, down 2.55 pence compared to day-ahead contracts on Wednesday.
Gas for Thursday was down at 36 pence from 41 pence compared with within-day contracts in the previous session, while April eased 0.15 pence at 29.85 pence.
"Everything's held up on Norwegian flows, but the weather is milder than it has been. We just have to get through this spell of Ormen Lange being down and the system being short," one gas trader said.
National Grid forecast Thursday gas demand to be 365 million cubic metres (mcm) a day due to milder weather, around 35 mcm/day lower than for Wednesday demand.
Dutch flows via the BBL pipeline were also up to 29 mcm/day after falling to zero briefly on the previous day due to an electrical fault at the Bacton receiving gas terminal.
But Norwegian flow via the Langeled pipeline was still around 42 mcm/day compared to its capacity of 70 mcm/day after a power outage disrupted production at Shell's (RDSa.L) large Ormen Lange gas field that feeds into Langled. [ID:nLDE62A0E8]
But more supply was expected, with another liquefied natural gas (LNG) tanker due at Milford Haven in south Wales next week. [ID:nWLB9794]
For a list of LNG tankers expected to arrive in Britain and Belgium, please click here: [ID:nLDE6180CW]
Along the curve, summer 2010 lost 0.10 pence to 29.50 pence while winter 2010 was little-changed at 40.80 pence.
In the over-the-counter power market, baseload electricity for Friday was 34.70 pounds per megawatt hour, down 80 pence compared with day-ahead contracts on Wednesday.
Friday prices -- usually softer due to lower industrial demand as factories shut for the weekend -- were also pulled down by warmer weather and gas falling.
"Prompt traded up to 35.40 pounds earlier but then back to the level it is now, after gas traded down," one power dealer said.
April and May baseload electricity contracts were flat at 34.20 pounds and 33.90 pounds respectively.
The day-ahead auction price on Britain's N2EX wholesale power exchange was set at 34.96 pounds for Friday, compared with 36.07 pounds for Thursday baseload power.
