Wednesday, 18 May 2011

UK gas prices rise with oil, LNG terminal dip

British gas prices rose on a sharp drop in supplies from the South Hook liquefied natural gas (LNG) terminal and rising crude oil prices, traders said.

Gas for delivery on Wednesday hit a high of 58.60 pence per therm when flows into the network from Europe's biggest LNG import terminal dived from around 50 million cubic metres a day to just 6 mcm. Gas for Thursday hit 58.50 pence.

"South Hook is one factor on the spot," one market observer said, adding that oil was the main driver for the rise in forward gas prices, with Winter 2011/12 reaching 69.00 pence.

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