U.K. Natural Gas Falls as LNG Terminal, Irish Sea Flows Return
U.K. natural gas fell, reversing gains, as flows from the South Hook liquefied gas terminal and an Irish Sea field returned, boosting supply.
The price of within-day gas on the APX exchange rose overnight as much as 3.3 percent to 65 pence a therm when flows from the South Hook liquefied natural gas terminal in south Wales halted for about three hours. The network manager buys and sells the fuel on Amsterdam-based APX to balance pressure in the pipeline system and ensure its safety.
By 4:30 p.m. the site was pumping as much as 51 million cubic meters a day. Flows from Centrica Plc’s South Morecambe field in the Irish Sea also resumed after a halt, National Grid Plc data show.
Gas for delivery today fell 0.45 pence, or 0.8 percent, to 56.75 pence a therm as of 4:30 p.m. local time, according to broker data compiled by Bloomberg. That’s equal to $8.99 a million British thermal units. A therm is 100,000 Btu. The contract earlier rose as much as 4.9 percent.
Deliveries from Norway to the U.K. through the Langeled pipeline dropped to 31 million cubic meters a day, from a maximum rate of about 71 million, according to National Grid.
Production at Norway’s biggest gas field, Troll, is reduced due to repair work on an electric cable that supplies utility systems. The Oseberg field’s A, B and D platforms remain halted after a Jan. 24 gas leak.
The weather will be “mainly dry and cold across most areas” today and become “cold and mostly dry with a widespread frost” tonight, the U.K.’s Met Office said on its website.
National Grid forecast gas demand at 392 million cubic meters in the 24 hours through 6 a.m. tomorrow, about 30 million more than the seasonal norm. London temperatures may drop to minus 3 degrees Celsius (27 degrees Fahrenheit) on Feb. 1 from today’s low of 1 degree, according to CustomWeather Inc. data.
Gas for next month declined 0.9 pence, or 1.6 percent, to 53.95 pence a therm. Gas for next winter, the six months through March 2012, lost 0.51 pence at 58.09 pence a therm.
Two additional LNG tankers are heading to the U.K., meaning at least nine more will arrive by Feb. 14.
U.K. baseload power for next month fell 65 pence, or 1.3 percent, to 47.75 pounds a megawatt-hour, broker data show. Baseload is delivered round the clock.
To contact the reporter on this story: Ben Farey in London at email@example.com
To contact the editor responsible for this story: Stephen Voss on firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.