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UK GAS: Spot prices hit week-low levels as demand declines

Increase font size  Decrease font size Date:2013-04-22   Views:512
Spot gas prices on the UK's NBP trading hub began the new week at the lowest levels in seven-days as demand eased back towards seasonal norms with warmer temperatures moving across the country.

The LNG outlook is looking healthier, too, with three ships expected to reach British shores by the end of the week.

Gas for same-day delivery was valued at 75.20 pence/therm at 1100 GMT in London, having fallen 5.05 p/th from Friday's close. The day-ahead contract heard similar movements, shedding 5.50 p/th at 75.25 p/th.

The system was well supplied throughout the morning with little assistance from storage withdrawals.

At midday, National Grid had forecast demand pegged at 283 million cubic meters -- 19 million cu m above seasonal norms -- with the system long by 18 million cu m.

No gas was being withdrawn from Rough storage which announced on Friday a potential additional 100 million cu m of stock, and Hornsea was the only medium range facility contributing to the system, at 14 million cu m, Grid showed.

Platts' unit Bentek Energy said 187 million cubic meters of medium range storage stocks remain.

The South Hook LNG terminal was supplying the system at a rate of about 25 million cu m, with the terminal expecting two vessels during the week.

The Mozah and Al Mayfar from Qatar are due on Wednesday and Thursday with cargoes holding the equivalent of 155.5 million cu m, Bentek said.

And the Isle of Grain terminal can expect the Ramdane Abane with 73.3 million cu m from Algeria on Friday.

Demand is expected to fall throughout the week, to a low of 261 million cu m on Thursday, as temperatures are due to rise and curb gas burn.

London was 2 degrees Celsius below norms on Monday, CustomWeather showed, but is expected above average by Friday.

The bearish trend extended to May and Q3, 13 which lost 0.60 and 0.35 p/th at 67.60 and 66.90 p/th, respectively.

Seasonal contracts edged lower with Winter 13 and Summer 14 each falling by 0.10 p/th to 66.90 and 73.55 p/th.
 
 
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