London (Platts)--14Mar2011/812 am EDT/1212 GMT
UK Summer 11 gas prices rose around 4 pence/therm in early trading Monday due to the crisis at Japan's nuclear power plants. Analysts say they think that possible prolonged shutdowns at nuclear facilities in the earthquake-struck country could boost demand for LNG. Summer 11 NBP gas was last traded at 64.25 p/th ($10.34/MMBtu) by 0900 GMT. Monday, up 4.15 p/th from last Friday's closing level. The Winter 11 showed similar large gains, up to 72.50 p/th from last Friday's 69 p/th close.Request a free trial of: European Gas DailyEuropean Gas Daily is a flagship Platts publication that delivers crucial competitive intelligence across the entire European gas marketplace. It keeps you ahead of critical price changes and their effects on the industry. The last time Summer 11 was so high was in mid-October 2008. During 2009 and 2010 the economic slowdown kept forward gas prices at lower levels. On the short-term side prices were also rising. UK within-day gas was trading at 64.00 p/th ($10.30/MMBtu), up 4 p/th from last Friday's day-ahead close The UK takes a large portion of its gas from the global LNG market. Traders say they think that if more cargoes are diverted to Japan's gas-fired power plants to replace lost nuclear output, then global LNG prices could rise. The day-ahead Dutch TTF price rose Monday to Eur24.65/MWh, up Eur1.20/MWh from last Friday's close. The TTF is the busiest trading hub in Continental Europe. National Grid, the UK gas network operator, showed UK demand for Monday estimated at 306 million cubic meters, below the seasonal normal for the time of year of 334 million cu m. On the 0900 GMT figures, supplies for the day were expected at 282 million cu m, leaving the system 24 million cu m short. Traders could relieve the shortage over the course of the trading day by turning up flows from gas import and storage facilities. For example, the UK's main storage facility, Rough, was not delivering out any gas Monday morning and could be turned on. If competition for LNG increases, analysts say this would not present a security of supply problem for Europe, but could result in European utilities taking more gas under their oil-indexed, long-term supply contracts, which they have been turning down over the past couple of years.
UK Summer 11 gas prices rose around 4 pence/therm in early trading Monday due to the crisis at Japan's nuclear power plants. Analysts say they think that possible prolonged shutdowns at nuclear facilities in the earthquake-struck country could boost demand for LNG. Summer 11 NBP gas was last traded at 64.25 p/th ($10.34/MMBtu) by 0900 GMT. Monday, up 4.15 p/th from last Friday's closing level. The Winter 11 showed similar large gains, up to 72.50 p/th from last Friday's 69 p/th close.
European Gas Daily is a flagship Platts publication that delivers crucial competitive intelligence across the entire European gas marketplace. It keeps you ahead of critical price changes and their effects on the industry.