Bloomberg News

U.K. July Gas Stable Amid Ample Supply; Day-Ahead Power Rises

June 06, 2011

June 6 (Bloomberg) -- U.K. natural gas for next month was little changed amid ample supplies of the fuel as flows from liquefied gas terminals increased and exports declined. Day- ahead power rose.

Flows from the Dragon and South Hook LNG terminals in south Wales increased, boosting supply, according to National Grid Plc data on Bloomberg. Pipelines in the country will contain 331 million cubic meters of gas at 6 a.m. tomorrow. That’s less than at the start of today. Earlier supplies were predicted to rise by 8 million cubic meters, according to the network manager.

Exports to mainland Europe were forecast to drop. Interconnector (U.K.) Ltd.’s pipeline was exporting at a rate of about 26 million cubic meters a day to Belgium from 39 million yesterday, according to data on the company’s website.

Gas for July declined as much as 0.35 pence, or 0.6 percent, to 58 pence a therm. It was at 58.25 pence as of 4:30 p.m. in London, according to broker prices compiled by Bloomberg. That’s equal to $9.53 a million British thermal units.

“There are some indications that some southern and eastern parts of the U.K may see temperatures rising above average at times” from June 20 through July 4, the Met Office said on its website. Warmer weather may cut heating demand.

Total SA’s North Sea Alwyn platform closed yesterday for maintenance, Brian O’Neill, a company spokesman, said in an e- mailed statement today.

The Alwyn area produces about 150,000 barrels of oil equivalent a day, according to Total’s website. Natural gas is exported to the St. Fergus terminal in Scotland through the Frigg Transportation System and oil via Cormorant Alpha and the Brent pipeline system to the Sullom Voe Oil Terminal.

U.K. baseload power for the next working day rose 60 pence, or 1.2 percent, to 51.20 pounds a megawatt-hour, according to broker data compiled by Bloomberg. Baseload is delivered around the clock.

--Editors: Rob Verdonck, Mike Anderson

To contact the reporter on this story: Ben Farey in London at bfarey@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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