UK prompt gas prices calmed Tuesday as flows of liquefied natural gas rose to help meet recent hefty demand levels, which despite being lower on the day were still hovering near 2010 highs and was enough to trigger the second balancing alert in two days by National Grid, traders said.
Gas for next day delivery was down 2.50 pence a therm at 62.75 p/th by midday London time, while the within-day contract was a little more stable finding support half a pence higher than Monday's close at 63 p/th.
"Forecast demand is slightly lower this morning. However, this has still triggered the second gas balancing alert from the National Grid. The system opened 24 million cubic meters long due to an increase in flows from LNG terminals Dragon and South Hook, but Interconnector exports are slightly subdued from yesterday," a trader said.
CustomWeather data showed temperatures 10 degrees Celsius below the seasonal average Monday were forecast to warm to around 6 degrees Celsius below normal Tuesday, where it would remain for the rest of the Christmas period.
National Grid data showed forecast demand was still around 30% above the seasonal average at 458 million cu m/d by lunchtime, down from 468 million cu m/d Monday. But with supply at 475 million cu m/d, the system was 17 million cu m/d long on gas.
Flows of LNG were at a total 100 million cu m/d Tuesday after South Hook ramped up 10 million cu m/d to 55 million cu m/d, Dragon was at 15 million cu m/d and Isle of Grain contributed 30 million cu m/d to the system. That is a total increase of 25 million cu m/d on levels Monday.
LNG is also going to be backed up by fresh deliveries in the next week, with UK port data showing three fresh LNG cargoes expected to berth at South Hook from Qatar in the next week, including the Umm Al Amad expected sometime Tuesday, the Mozah on December 23 and the Aamira on Boxing Day.
Meanwhile, despite nominated imports forecast to be 10 million cu m/d lower through the UK-Belgium Interconnector Tuesday the total 31 million cu m/d expected is considered to still be healthy in comparison to the 10-20 million cu m/d imported last week.
Domestically, pipeline flows are unchanged on the day with 70 million cu m/d flowing through the Langeled pipeline and 45 million cu m/d being withdrawn from the long range Rough storage unit. Pressure was however eased on medium range facilities Aldbrough and Hornsea which were being withdrawn from Monday.
Further forward, contracts were a little more stable after becoming exposed to the recent erratic moves on the prompt as the front-month attracted trading activity a quarter of a pence higher at around the 58.50 p/th level and the front-quarter changed hands a quarter of a pence lower at 57.25 p/th.
On the far end of the curve, traders said oil prices opened stronger with front-month Brent crude oil rising above $92.95 a barrel, which they said could offer some support to longer dated contracts.
Gas for delivery in Summer 2011 was 0.45 p/th higher by midday at 52.75 p/th.
Gas for next day delivery was down 2.50 pence a therm at 62.75 p/th by midday London time, while the within-day contract was a little more stable finding support half a pence higher than Monday's close at 63 p/th.
"Forecast demand is slightly lower this morning. However, this has still triggered the second gas balancing alert from the National Grid. The system opened 24 million cubic meters long due to an increase in flows from LNG terminals Dragon and South Hook, but Interconnector exports are slightly subdued from yesterday," a trader said.
CustomWeather data showed temperatures 10 degrees Celsius below the seasonal average Monday were forecast to warm to around 6 degrees Celsius below normal Tuesday, where it would remain for the rest of the Christmas period.
National Grid data showed forecast demand was still around 30% above the seasonal average at 458 million cu m/d by lunchtime, down from 468 million cu m/d Monday. But with supply at 475 million cu m/d, the system was 17 million cu m/d long on gas.
Flows of LNG were at a total 100 million cu m/d Tuesday after South Hook ramped up 10 million cu m/d to 55 million cu m/d, Dragon was at 15 million cu m/d and Isle of Grain contributed 30 million cu m/d to the system. That is a total increase of 25 million cu m/d on levels Monday.
LNG is also going to be backed up by fresh deliveries in the next week, with UK port data showing three fresh LNG cargoes expected to berth at South Hook from Qatar in the next week, including the Umm Al Amad expected sometime Tuesday, the Mozah on December 23 and the Aamira on Boxing Day.
Meanwhile, despite nominated imports forecast to be 10 million cu m/d lower through the UK-Belgium Interconnector Tuesday the total 31 million cu m/d expected is considered to still be healthy in comparison to the 10-20 million cu m/d imported last week.
Domestically, pipeline flows are unchanged on the day with 70 million cu m/d flowing through the Langeled pipeline and 45 million cu m/d being withdrawn from the long range Rough storage unit. Pressure was however eased on medium range facilities Aldbrough and Hornsea which were being withdrawn from Monday.
Further forward, contracts were a little more stable after becoming exposed to the recent erratic moves on the prompt as the front-month attracted trading activity a quarter of a pence higher at around the 58.50 p/th level and the front-quarter changed hands a quarter of a pence lower at 57.25 p/th.
On the far end of the curve, traders said oil prices opened stronger with front-month Brent crude oil rising above $92.95 a barrel, which they said could offer some support to longer dated contracts.
Gas for delivery in Summer 2011 was 0.45 p/th higher by midday at 52.75 p/th.
