December 21, 2011 / 10:51 AM / 7 years ago

UK gas falls as Norway supply returns, demand drops

* Langeled flows rise after Monday's production problems
    * Wednesday gas demand drops nearly 10 pct below norms
    * Power down on industrial demand drop ahead of Christmas

    LONDON, Dec 21 (Reuters) - British prompt gas prices
fell on Wednesday, trading about 7 percent below highs seen on
Tuesday, as imports from Norway rose following production
problems earlier in the week and milder weather reduced gas
demand for heating.	
    Shell's huge Ormen Lange offshore gas field, which
feeds the Langeled pipeline from Norway, was ramping up
production again on Tuesday, the operator said, after output
problems late on Monday.	
    Gas for within-day delivery on Wednesday slipped nearly 4
pence to 55.35 pence per therm at 0949 GMT on Wednesday as
rising gas flows via the UK-Norway Langeled pipeline left the
system oversupplied.	
    "Prices are going down. Ormen Lange is back, Langeled flows
are at 72 mcm (million cubic metres), so it's all good," said
one UK gas trader at a utility, which experienced production
problems on Monday, but was ramping up output again on Tuesday,
the operator said.	
    Prices also reacted to a near 10-percent drop in gas demand
below seasonal norms as milder weather reduced the use of gas in
heating systems.	
    Day-ahead gas traded down 1.15 pence at 55.10
pence.	
    Tuesday's curve contract support from the carbon market
faded on Wednesday after EU allowances fell again one day after
an EU Parliament vote to tighten supply spiked prices by 18
percent. 	
    Front-season British gas prices fell 0.25 pence to 55.55
pence on Wednesday morning.	
    	
    WEATHER	
    Milder weather is forecast for Thursday and the Christmas
weekend, according the Met Office. Saturday could bring some
lower temperatures and strong winds.	
    	
    POWER	
    Prompt power prices continued sliding on Wednesday as
industrial demand for electricity is expected to start dropping
with factories winding down for the Christmas period.	
    Day-ahead baseload power traded down 25 pence at 42.60
pounds per megawatt-hour (MWh).	
    Stable wind power generation was also expected to add to
comfortable system margins on Thursday, National Grid data
showed.	
       	
    GAS-Please click on the following for information about UK
and Belgian prices, field maintenance and field start-ups.	
    UK natural gas prices 
    Belgian natural gas prices 
    North Sea field start-ups    	
    North Sea field maintenance  	
    POWER	
    UK:      baseload prices , outages 	
             report 
    FRANCE:  baseload prices , peak 
             market report, Powernext,
             Spectron  baseload , off peak , peak 
             nuclear outages: report, offline 
             percentage , offline capacity  (MW) 
    GERMANY: baseload prices , peak 
             outages, report 	
    SWITZERLAND: outages, reservoir levels 	
    NORDIC:  report 	
    EU CARBON PRICES SPEEDGUIDE:
0 : 0
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