UK GAS-Prices firm as gas flows to the Continent
British prompt gas prices firmed on Wednesday as a major pipeline switched to export gas to the Continent rather than receive supplies and weather forecasters lowered temperatures for the coming days.
* Day-ahead gas was up 0.6 pence, or 1.23 percent, at 49.50 pence per therm at 0800 GMT
* Within-day gas rose 0.9 pence to 49.25 p/therm
* The IUK interconnector between the UK’s Bacton terminal and Belgium has begun exporting gas to the continent, marking the start of the so-called summer gas season.
* During the season, which started on April 1, there is typically lower gas demand for heating.
* Weather forecasters monitored by Thomson Reuters have reduced temperature forecasts by 0.4 degrees Celsius for the weekend and by 0.2 degrees for next week.
* The gas system is balanced with consumption seen at 266.6 million cubic metres (mcm) and supply at 268.5 mcm, according to National Grid data.
* Two LNG tankers arrived in the UK earlier this week and their sendout is supplementing the market.
* Another two LNG tankers are expected to arrive on Thursday and Sunday at the Dragon terminal
* Dutch day-ahead gas prices edged up, trading at 18.70 euros per megawatt hour, up 0.05 euro.
* The benchmark Dec-18 EU carbon contract was 0.2 euro down at 13.50 euros a tonne.
Source: Reuters (Reporting by Sabina Zawadzki, editing by Louise Heavens)