LONDON: British spot gas prices rebounded as domestic and Norwegian supplies declined, while higher estimated exports to Belgium further tightened the supply-demand balance.
Prices for within-day delivery were up 1.10 pence at 41.75 pence per therm at 0720 GMT. The day-ahead contract rose 2.33 percent at 41.65 pence per therm.
The United Kingdom was undersupplied by 8 million cubic metres/day (mcm) with demand pegged at 183.2 mcm, according to National Grid (LSE: NG.L – news) data.
Flows from Norway fell 32 mcm lower at 53 mcm after surging on Monday following the end of maintenance at the Troll gasfield, the country’s largest.
At the same time Britain was expected to export 40 mcm to Belgium through the sub-sea gas link, up 8 mcm from the previous session.
Gas deliveries through the Far North Liquids and Associated Gas System (FLAGS) to Britain fell by 20 mcm, analysts at Thomson Reuters Point Carbon said.
FLAGS feeds gas into Shell (LSE: RDSB.L – news) ‘s St Fergus terminal, where flows dropped to 14 mcm from around 28 mcm overnight. Flows into the St Fergus Mobil sub-terminal fell to zero from 9 mcm, National Grid data showed.
Brent crude was up 32 cents at $50.71 a barrel, after touching $48.24 in the previous session, its lowest in more than six months.
Send-out from the South Hook liquefied natural gas (LNG) terminal rose to 30 mcm/day from 22 mcm potentially clearing tank space for a new cargo delivery aboard the Rasheeda tanker due on August 18.
Gas prices further along the curve also rose, with the Winter 2015 contract up 0.40 pence at 45.20 p/therm, above Friday’s contract low of 44.30 p/therm.
In the Netherlands, the day-ahead gas price at the TTF hub was up 0.18 euros at 20.20 euros per megawatt-hour (MWh).
