LONDON: British wholesale gas prices fell on Friday morning due to less exports to Europe and slightly lower Norwegian flows. Within-day gas price was down by 1.53 pence to 45.50 pence/therm at 0723 GMT. The October contract was 0.50 pence lower at 46.00 p/therm. Exports through the InterconnectorUK pipeline to continental Europe have dropped to 26 million cubic metres (mcm) from 41 mcm/day on Thursday. Flows from Norway are slightly lower at 87 mcm/day, compared to 90 mcm on Thursday. Gas-for-power demand has also declined to 53 mcm/day from 59 mcm the previous day.
Demand is forecast at around 200 mcm and flows at nearly 209 mcm/day, leaving the system 9 mcm over-supplied, National Grid data shows. Centrica Storage Limited’s (CSL) Rough gas storage site could start withdrawals of its remaining operational stocks next week, along with the cushion gas it has been allowed to convert into working gas. Based on the firm’s withdrawal curve for Rough, the site could start withdrawals at 12 mcm/day. However, if the maximum withdrawal rate is achieevd each day, available stocks could be depleted by early January, Thomson Reuters analysts said. “Given the discount the October contract holds to the other mid-winter months, we believe that there is a high possibility that CSL won’t start withdrawing gas as early as next week,” said TR gas analyst Marina Tsygankova. However, it could be bearish for the market if CSL does start withdrawals next week, she added. In the Dutch gas market, the day-ahead price at the TTF hub was down 0.40 euro at 17.30 euros per megawatt hour. The benchmark Dec-17 EU carbon contract inched up by 0.03 euro to 6.99 euros a tonne.
