Thursday, 23 September 2010

UK business gas prices rise again on low supply

British business gas prices
continued to rise on Thursday as flows from liquefied natural gas (LNG)
terminals and Norway remained low and colder weather looked set to spread
across the country over the weekend.

Gas for day-ahead delivery rose to 43.75 pence per therm by 1020 GMT, with
temperatures expected to drop sharply on Friday in many parts of a country
where gas is largely used for heating, while prices for weekend delivery
firmed to 43.60 pence, up 0.70 pence.

Despite flows through Norway's Langeled gas pipeline remaining unusually low
at under 10 million cubic metres per day, there was no supply from the Isle
of Grain or Dragon LNG terminals, and although South Hook LNG was healthy it
wasn't enough to dampen prices which have rallied all week. Norwegian pipeline operator Gassco said there were no operational issues on
Thursday other than the ongoing maintenance outage at the Kollsness export
plant, which is expected to end on Monday.

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