Monday, 21 May 2012

UK gas at two-month low on Friday as Norway imports treble

British short-term gas prices fell to a two-month low on Friday after a high increase in imports via Norway's Langeled pipeline flooded the market with gas and balanced out supply losses resulting from maintenance work elsewhere.

Gas for within-day delivery fell nearly 3 pence, around five percent day on day, to 55.50 pence per therm as the market was oversupplied by more than 20 million cubic metres per day (mcm/d).

The main reason for oversupply was a jump in Norwegian gas imports through Langeled, which have more than trebled since Thursday afternoon to over 60 mcm/d, National Grid data showed.

"Langeled is ramping up and everyone sells it," said on UK gas trader at a utility.

Flows through the pipeline had been cut last weekend and earlier this week when a gas processing plant feeding the pipeline was undergoing maintenance.

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