U.K. Natural Gas Rises Most in Two Weeks as Norwegian Flows Drop

U.K. natural gas for immediate delivery rose the most for more than two weeks as Norwegian flows fell amid an unplanned reduction.

Within-day gas gained as much as 3.4 percent to 65.3 pence a therm before trading at 63.9 pence at 5:12 p.m. in London. Gas supplies from Norway, the U.K.’s biggest foreign supplier, were at 57 million cubic meters a day, rebounding after earlier dropping as low as 53 million, the lowest level in four days, according to data from Gassco AS, Norway’s network operator. The 10-day average is 67 million.

Norwegian gas production will be cut by 9.7 million cubic meters a day today, Statoil ASA said on its website. Statoil has reduced flexibility at its Troll field in Norway until next summer, Oeystein Michelsen, executive vice president, said in an interview in Oslo on Sept. 5. Norwegian supply from an unspecified field is cut by 34 million cubic meters a day until Sept. 24 next year, according to Gassco.

“It’s not really cold, but with Troll with its very prolonged outage it’s going to be more volatility,” Trevor Sikorski, an analyst at Energy Aspects Ltd., said by telephone today.

The average U.K. temperature next week will be 12.4 degrees Celsius (54 degrees Fahrenheit), 0.8 degrees higher than the seasonal norm, according to MetraWeather data using the ECMWF model at 7:55 a.m. in London.

National Grid reduced its forecast for demand to 170 million cubic meters from 196 million at 11 a.m. Nominations for exports to Belgium via Interconnector (U.K.) Ltd.’s pipeline fell to about 15 million cubic meters from 23 million earlier, according to the company’s website.

Day-ahead gas rose as much as 1.8 percent to 64.25 pence a therm, according to broker data on Bloomberg. The next-month contract gained 0.7 percent to 68.4 pence a therm at 5:20 p.m. on the ICE Futures Europe exchange in London.

The Al Ghuwairiya LNG tanker changed its destination back to the U.K.’s Isle of Grain terminal today, without giving an estimated date of arrival, according to ship data compiled by Bloomberg. The ship has “restricted maneuverability,” the data show.

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