U.K. Same-Day Gas Snaps Seven-Day Gain as Demand Slumps

U.K. natural gas for same-day delivery declined by the most in 10 weeks as demand fell. Power for tomorrow weakened.

Within-day gas dropped as much as 5.5 percent, the biggest slide since May 25, after seven days of gains, the longest rising streak since October 2009, according to broker data compiled by Bloomberg. Demand in the 24 hours to 6 a.m. tomorrow will be 167 million cubic meters, down from 170 million yesterday, National Grid Plc data show.

Same-day gas fell 2.6 pence, or 4.7 percent, to 53.2 pence a therm at 4:37 p.m. London time. September gas declined 1.5 percent to 55.4 pence. That’s equivalent to $8.69 per million British thermal units, and compares with $2.76 per million Btu of front-month U.S. gas.

The Nyhamna natural gas-processing plant, which receives fuel from Norway’s Ormen Lange field, cut production by 35 million cubic meters a day for eight to 12 hours from 3:56 p.m. local time today, Gassco AS said. It will take 30 hours to reach full production, Gassco said on its website.

Royal Dutch Shell Plc said today power consumption at Ormen was “restricted due to an unplanned trip,” according to a Nord Pool Spot AS filing.

Kollsnes Maintenance

Gassco changed its planned maintenance schedule at the Kollsnes natural gas-export plant in Norway, according to a statement on its website.

Kollsnes will reduce exports by 25 million cubic meters a day from today to Aug. 26 and by 45 million cubic meters a day from Aug. 26 to Sept. 10. The company previously said flows would be cut by 45 million cubic meters a day from Aug. 10 to Sept. 10.

Imports from Norway were at a rate of 34 million cubic meters a day, compared with a six-month average of 67 million, Gassco data show. Norway is the biggest overseas gas supplier to the U.K. Flows through the Langeled pipeline to Easington on the east coast of the U.K. slowed to 12 million cubic meters a day, approaching the least since May, National Grid data show.

Exports to Belgium were at a rate of 29 million cubic meters a day, down from 33 million yesterday, according to pipeline operator Interconnector U.K. Ltd.

Inventories at Rough, the U.K.’s largest gas-storage facility, climbed 0.3 percent to 38,067 gigawatt-hours, a record for the time of year, according to National Grid data. So-called medium-range storage levels increased 0.7 percent to 8,259 gigawatt-hours, also a seasonal record.

Power for tomorrow dropped 1.7 percent to 40.81 pounds ($63.96) a megawatt-hour, broker data show. Winter electricity dropped 0.8 percent to 48.80 pounds a megawatt-hour.

Gas accounted for 28 percent of U.K. power production at 4:25 p.m., National Grid data show. Coal accounted for 36 percent, nuclear 23 percent and wind 6.9 percent.