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U.K. Natural Gas Slumps as Exports Fall, Flows From Norway Rise
2010-08-18 09:18:41.444 GMT
By Ben Farey
Aug. 18 (Bloomberg) -- U.K. natural gas slumped to an 11-
week low as demand for exports dropped and flows from Norway
increased even as a gas-processing plant in Britain's biggest
foreign supplier of the fuel closed for maintenance.
Exports to Belgium are forecast at 33 million cubic meters
today, according to a website run by Interconnector (U.K.) Ltd.,
owner of the reversible pipeline between Bacton and Zeebrugge.
That's less than the 49 million cubic meters yesterday. Imports
through the Langeled pipeline from Norway into northeast England
rose by 30 percent to a rate of 41 million cubic meters a day at
9 a.m., National Grid Plc data show.
The Kaarstoe gas plant "is shutting down as planned" and
will be closed until Sept. 8, Kjell Varlo Larsen, spokesman for
Bygnes-based Gassco AS, the operator of Norway's pipeline
system, said in an e-mailed statement. The plant can process as
much as 88 million cubic meters of gas a day for export to
mainland Europe and the U.K.
Gas for September delivery declined as much as 3.6 pence,
or 1.4 percent, to 37.15 pence a therm, the lowest price since
June 2. The contract was at 37.6 pence at 9:45 a.m. in London,
according to broker data compiled by Bloomberg. That's equal to
$5.87 a million British thermal units. A therm is 100,000 Btus.
Royal Dutch Shell Plc's North Sea Sean gas field started
production, boosting deliveries into Bacton in eastern England.
Centrica Plc, Britain's biggest energy supplier, is the sole
buyer of gas from the Sean field, which operates for 21 to 100
days a year.
Demand Falls
National Grid, the network manager, forecast demand for gas
may fall to 229 million cubic meters in the 24 hours through 6
a.m. London time tomorrow, compared with 238 million yesterday.
The nation's pipelines will hold 358 million cubic meters of gas
at that time, 23 million more than at the start of the day.
Gas for same-day delivery fell 1.95 pence to 38.15 pence a
therm. Winter gas, to be delivered in the six months through
March, slipped 1.1 pence to 46.2 pence a therm, the lowest level
since May 13.
Bloomberg compiles prices from brokers including ICAP Plc,
GFI Group Inc. and Spectron Group Ltd.
For Related News and Information:
Top Gas Story Page: TGAS <GO>
U.K. Gas Prices: UGAS <GO>
--Editors: Rob Verdonck, Raj Rajendran
To contact the reporters on this story:
Ben Farey in London at +44-20-7673-2369 or
bfarey@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or sev@bloomberg.net
