Bloomberg News

U.K. Natural Gas Drops as System Flows Exceed Predicted Demand

February 18, 2013

U.K. natural gas for today fell as system flows exceeded predicted demand by the most in a month, leaving the delivery network with a surplus.

Day-ahead and next-month gas also declined, according to broker data compiled by Bloomberg. The delivery network will contain 400 million cubic meters of gas at 6 a.m. tomorrow, up from 349 million 24 hours earlier, the biggest difference since Jan. 18, National Grid Plc data showed earlier. Closing linepack was predicted at 350 million cubic meters at 4:25 p.m. London time.

Gas for today dropped 1.3 percent to 66.5 pence a therm. Month-ahead gas slipped 0.3 percent to 66 pence a therm. That’s equivalent to $10.21 per million British thermal units and compares with $3.17 per million Btu of front-month U.S. gas.

Demand in the 24 hours to 6 a.m. tomorrow is forecast at 326 million cubic meters, compared with a seasonal normal of 309 million, National Grid data show. System flows were at 330 million cubic meters a day versus a 10-day average of 334 million, after reaching 347 million earlier today, grid data show.

Norwegian imports were at 124 million cubic meters a day, after reaching 131 million, the most since Jan. 15, Gassco AS data show.

Statoil ASA’s output will be reduced by 6.3 million cubic meters a day tomorrow for one day after cutting production by 6.6 million cubic meters a day today, the company said on its website.

South Morecambe gas field halted production at 3:59 p.m. for an indefinite period of time, Centrica Plc said on its website.

To contact the reporter on this story: Matthew Brown in London at

To contact the editor responsible for this story: Lars Paulsson at

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