UK GAS-Prompt prices edge lower on LNG arrivals and Norwegian flows

Prompt British wholesale gas prices edged lower on Thursday morning on an influx of liquefied natural gas (LNG) cargoes to UK terminals, stronger Norway flows and an expected drop in demand.

* The within-day contract fell 0.25 pence to 31.85 pence per therm by 1030 GMT.

* Day-ahead gas fell 0.5 pence to 31.50 p/therm.

* Britain’s gas market was 15.6 million cubic metres (mcm) undersupplied with demand forecast at 318.7 mcm and supply at 303.1 mcm, National Grid data showed.

* The undersupply is because of higher gas-for-power demand on Thursday, Refinitiv analysts said in a morning report.

* Gas-for-power-demand is expected to drop on Friday, however, with residential consumption also forecast to reduce slightly.

* Over the weekend, demand for gas in power generation is predicted to drop further.

* Supply increased on Tuesday, with Norway’s exports to Britain rising by 8 mcm from Wednesday to 88 mcm on Thursday, Gassco data showed.

* LNG sendout increased by 6 mcm to 84 mcm/day.

* Four LNG tankers arrived in Britain in the past day, with at least 16 more expected to unload by Jan. 1, meaning sendout will have to stay strong.

* Curve contracts were mixed, with January and Summer 2020 products trading higher.

* The January gas contract was up 0.36 pence at 36.36 p/therm

* The Summer 2020 contract rose 0.45 pence to 33.45 p/therm

* Day-ahead gas at the Dutch TTF hub was up 0.02 euros at 13.20 euros per megawatt hour.

* The benchmark Dec-19 EU carbon contract gained 0.07 euros to 24.55 euros a tonne
Source: Reuters. (Reporting by Ekaterina Kravtsova Editing by David Goodman )