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UK GAS-Prompt contracts mostly fall ahead of major export pipe outage

British wholesale prompt gas prices mostly fell on Tuesday ahead of a planned two-week maintenance on a major export pipeline to Belgium, which is set to trap more supply in the United Kingdom as domestic output climbs.

* Day-ahead gas fell by 2.08 pence to 53.85 pence per therm by 0951 GMT due to the shutdown of the Britain-Belgium interconnector on Wednesday until June 28, expected to weigh on gas prices.

* Exports to Belgium were due to surge 15 million cubic metres/day (mcm/day) to 28 mcm/day on Tuesday as European buyers took their fill before the outage.

* Furthermore, low gas for power demand this week weakened the correlation between high physical coal prices and UK day-ahead gas prices, analysts at Thomson Reuters said.

* Gas for working days next week fell a penny to 54 p/therm.

* Within-day gas bucked the downward trend, gaining 0.85 pence to 55.10 p/therm, reflecting tightening supply-demand as exports to Europe rose prior to the pipeline maintenance.

* UK Continental Shelf output rose by 2 mcm/day to 116 mcm/day, though nominated flows for the day were pegged higher at 116 mcm/day, according to National Grid data.

* Flows from Barrow North were ramping up following an outage as flows also resumed into the Perenco Bacton terminal.

* Gas supply from Norway to Britain steadied at 67 mcm/day.

* The British gas market was broadly balanced with demand forecast at 166.7 mcm and flows at 167.1 mcm/day, National Grid data showed.

* Day-ahead gas at the Dutch TTF hub rose by 0.05 euro to 21.65 euros per megawatt-hour.

* The benchmark Dec-18 EU carbon contract was down 0.29 euros at 15.20 euros a tonne.
Source: Reuters (Reporting by Oleg Vukmanovic Editing by Susan Fenton)

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