UK natural gas: Short system boosts spot contracts

London (Platts)--21 Sep 2017 949 am EDT/1349 GMT

UK NBP spot gas contracts were trading higher Thursday mid-morning on the back of an undersupplied system. Norwegian flows were running low due to maintenance, with total flows unable to cover the increased demand on the day.

  • Within-day up 1.50 p/th to 46.80 p/th
  • UK gas system 17 million cu m short
  • October up 0.225 p/th to 44.725 p/th

According to National Grid figures, at 10:00 am London time (0900 GMT) the gas system was 17 million cu m short, with physical flows of 180 million cu m/d below demand forecasts of 197 million cu m.

Video: Tight European natural gas markets approach Asian JKM prices

Within-day was up 1.50 p/th and day-ahead traded 0.45 p/th higher to be assessed at 46.80 p/th and 45.80 p/th, respectively.

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Norwegian gas flows into the UK National Transmission System were seen running at 67 million cu m/d, according to Norwegian gas operator Gassco.

The Kollsnes gas processing plant's delayed startup affected flows but is set to end on Friday. Moreover, a second field maintenance with a volume impact of 40 million cu m/d was announced earlier today.

UK gas exports to Continental Europe through the Interconnector were nominated higher on the day at 31 million cu m, according to IUK 10:00 am figures.

UK natural gas production nominations for Wednesday were 62 million cu m, according to Platts Analytics' Eclipse Energy.

The Stublach medium range storage was withdrawing at 6 million cu m/d, with flows from the Holford storage at 11 million cu m/d.

LNG regasification from the South Hook terminal was running at 5 million cu m/d at 10:00 am, with the Dragon terminal withdrawing at the same rate.

The forward months also traded higher, with October up 0.225 p/th at 44.725 p/th and November up 0.125 p/th at 48.10 p/th.

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