EURO GAS: Prompt prices edge higher on rising UK NBP

London (Platts)--30Nov2012/814 am EST/1314 GMT


Prompt prices on the Continental European gas hubs rose on Friday by midday, gaining strength from the neighboring UK NBP market as demand surged above the seasonal normal demand.

Day-ahead gas on the Dutch TTF added 10 euro cent on the day to trade at Eur27.55/MWh, after touching an intra-day high of Eur27.75/MWh.

Germany's NetConnect next day gas was valued flat to the TTF contract at Eur27.55/MWh, up 5 euro cent from Thursday's close, while the same gas contract on the German GASPOOL moved up 15 euro cent higher on the day to change hands at Eur27.65/MWh.

In the UK, gas demand was forecast at 346.3 million cubic meters of gas/day at 1200 GMT Friday, which is around 66.3 million cu m of gas higher than the usual demand for this time of the year, National Grid data showed. Higher demand in the UK supported prices on the Continent.

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Gas flows into the UK via the Dutch-UK BBL pipeline were strong at around 24.86 million cu m/day, at midday, while Norwegian gas through the Langeled pipeline was at 70 million cu m/d, National Grid website showed.

In addition, forecaster CustomWeather expects conditions in many parts of Europe to fall below the seasonal norm from the middle of next week, while London is expected to experience temperatures 4 to 6 degrees Celsius below the norm of 10-5 C during the weekend.

Further on the curve, the December and front-quarter gas contracts on the TTF rose to Eur27.55/MWh and Eur27.65/MWh, both up by 20 euro cent from the previous close.

The Cal 13 price stayed unchanged at Eur27.20/MWh by midday Friday.