Monday, 4 April 2011

UK prompt gas falls LNG supply hits record

Near-term wholesale British gas prices fell as inputs from liquefied natural gas (LNG) terminals hit record highs on Monday, while curve contracts rose as oil markets rallied, traders said.

Combined inputs of gas from the terminals at Milford Haven in south Wales and Isle of Grain near London peaked at around 119 million cubic metres a day at around 0910 GMT on Monday, surpassing the previous record set on Jan. 21, 2011 when demand for gas was higher.

The huge quantity of gas being sent into the network, enough to meet about 40 percent of UK demand for Monday if the flow rate is sustained, helped drive prices for gas delivered on Monday down to 57.25 pence, compared with last week’s close of 61.20 pence, before firming to 58.80 pence at 1010 GMT.

Gas for Tuesday fell to 58 pence, with large flows from Britain’s LNG terminals and a long line of tankers queuing up to restock them offsetting low supplies through Norway’s Langeled gas pipeline.

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