Day-ahead gas was trading half a penny higher than the previous close at 39.75 pence a therm, while within-day was up 0.15 p/th higher at 39.25 p/th by midday London time.
"Prompt prices are higher on the back of fears that the UK supply and demand system is very stretched at the moment. There are fears that with colder weather due at the end of the week this could support demand," a trader said.
"Prices could fall if we find we are more comfortable than expected, however, if anything else went down unexpectedly we could see a very tight system and prices rising," she added.
National Grid data showed the system was 8 million cu m/d long on gas Tuesday, with supply forecast at 214 million cu m/d and demand at 206 million cu m/d. Demand is currently 29 million cu m/d below the seasonal average.
Traders said that, heading into the next fortnight, extra pressure is feeding into the market from the weather front, which could intensify the impact Kollsnes maintenance in Norway has had on the market.
Kollsnes is down for planned maintenance for the two weeks until September 13 until September 27. Flows on the Langeled pipeline were down to 15 million cu m/d from 40 million cu m/d Monday morning.
Temperatures are forecast to fall to 5 degrees Celsius below the seasonal average in Manchester by the weekend in a range of 5-12 C compared with the seasonal average at present, Customweather data shows.
Flows of LNG are continuing at healthy levels from South Hook, at a rate of 42 million cu m/d, while Isle of Grain flows are at a minimal 3-5 million cu m/d.
There was no change in the LNG delivery schedule as the Um Slal berthed at South Hook on Tuesday and the Al Samriya is still expected there on September 18. The Al Aamriya will arrive on September 19 at Isle of Grain, local port data showed.
On the curve, traders said concern over the late injection of gas into storage ahead of the winter period has supported the front-month and season contracts.
Gas for delivery this October was changing hands just 0.05 p/th higher than the previous closing value at 42.65 p/th by midday, while the front-quarter was dealt 0.20 p/th higher at 46 p/th and at the far end, Winter 2010 was up 0.35 at 48.35 p/th.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
