Bloomberg News

U.K. Natural Gas Jumps Most Since August as Statoil Cuts Output

January 07, 2013

U.K. natural gas for same-day delivery advanced the most in more than four months as Statoil ASA (STL) said production from Norway was reduced, tightening the British delivery network.

The within-day contract surged 6.7 percent, the most since Aug. 20, according to broker data compiled by Bloomberg. Gas supply will be cut by 17 million cubic meters a day for an unspecified period, Statoil said on its website today. The delivery network will contain 327 million cubic meters at 6 a.m. tomorrow, down from 345 million 24 hours earlier, National Grid Plc (NG/) data show.

Gas for today climbed 4.2 pence to 66.4 pence a therm at 8:37 a.m. London time. Next-month gas jumped 2 percent to 68.1 pence a therm. That’s equivalent to $10.92 per million British thermal units and compares with $3.32 per million Btu of front- month U.S. gas.

A restriction on injections into Centrica Plc (CNA)’s Rough, the U.K.’s largest gas-storage facility, ended Jan. 4, according to a company website.

Imports from Norway were at a rate of 110 million cubic meters a day versus a 10-day average of 116 million, Gassco AS data show.

Demand in the 24 hours to 6 a.m. tomorrow will be 261 million cubic meters compared with a seasonal normal of 309 million National Grid data show.

The low temperature in London today was 7 degrees Celsius (45 Fahrenheit) versus a five-year average of zero, CustomWeather Inc. data on Bloomberg show.

Gas accounted for 24 percent of U.K. power production at 8:40 a.m., grid data show. Coal generated 46 percent, nuclear 20 percent and wind 3.6 percent.

Electricite de France SA will start its 605-megawatt Hartlepool-1 reactor in the U.K. on Jan. 10, two days earlier than planned, according to the company’s website. The unit halted Jan. 3.

Electricity for the next working day increased 0.4 percent to 47.75 pence a therm, broker data show.

To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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