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U.K. Same-Day Gas Falls to Lowest Since April; Power Declines
2010-09-20 15:50:54.155 GMT
By Ben Farey
Sept. 20 (Bloomberg) -- U.K. natural gas for immediate
delivery fell to its lowest price in almost five months as an
export pipeline to Europe remained closed for maintenance. Power
retreated.
Gas for immediate delivery slipped as much as 20 percent,
or 4 pence, to 27.5 pence a therm, its lowest level since April
23. The contract was at 33 pence as of 4:30 p.m. London time,
according to broker prices compiled by Bloomberg. That's about
$5.14 a million British thermal units. A therm is 100,000 Btus.
Gas for tomorrow fell 4.1 percent to 32.5 pence.
Demand for gas is forecast at 203 million cubic meters in
the 24 hours through 6 a.m. tomorrow, according to the network
manager. That's about 37 million less than normal for the time
of year. The U.K.'s pipelines will hold 330 million cubic meters
of gas at that time, about 8 million less than at the start of
today. Earlier today an oversupply was forecast.
U.K. baseload electricity for tomorrow fell 25 pence to
39.25 pounds ($61.25) a megawatt-hour as of 4:15 p.m. in London,
according to broker prices compiled by Bloomberg. The next-
working day contract last traded at 39.50 pounds on Sept. 17.
U.K baseload power for October lost 0.4 percent to 41.10 pounds
a megawatt-hour. Baseload power is delivered around the clock.
Interconnector (U.K.) Ltd., the operator of a reversible
gas pipeline between Britain and Belgium, closed the link for as
many as 15 days of maintenance on Sept. 9, boosting supplies
available for the U.K. The link had been exporting about 40
million cubic meters a day before it shut.
Gas for next month was little changed at 42.2 pence a
therm. The winter contract, for the six months from October, was
little changed at 47.16 pence.
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: John Buckley, Alex Devine
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
