OSLO: British prompt gas prices fell on Thursday on increased pipeline deliveries from Norway and expected milder weather towards the weekend.
The price of gas for day-ahead delivery eased by 0.35 pence to 48.40 pence per therm at 0930 GMT, and within-day delivery fell by 0.60 pence to 48.40 pence per therm.
National Grid (LSE: NG.L – news) data showed the system was 3.4 million cubic metres (mcm) long as Norway ramped up production after several outages ended.
National Grid data showed the system was 3.4 million cubic metres (mcm) long, with supply flows seen at around 360.3 mcm and demand forecast at 356.9 mcm.
Average temperatures were predicted to rise by 2 degrees Celsius by the weekend, reducing demand.
“Comfortable intra-day supplies have seen prompt contracts open softer… Further reductions in carbon prices are adding to bearish sentiment from the prompt, weighing on near curve and front season contracts,” one gas trader said.
Norway’s pipeline natural gas exports to Europe were near full production capacity on Thursday morning, with flows through the Langeled pipeline to Britain surging by 18 mcm on the day to a rate of 71 mcm/day.
