LONDON: British wholesale gas prices rose on Thursday morning due to reduced gas supplies from Norway and a drop in wind generation.
* Day-ahead gas rose by 2.25 pence to 37.00 p/therm at 0848 GMT.
* Within-day gas was 1.40 pence higher at 37.00 pence per therm.
* UK gas system was undersupplied by 21.1 million cubic metres (mcm), with demand forecast at 263.2 mcm and supply at 242.1 mcm.
* Norwegian gas flows to Britain fell by 6 mcm to 61 mcm/day, Refinitiv analysts said.
* An unplanned outage at the Oseberg field has impacted Norwegian gas output. The outage, which started on Wednesday, is expected to last for five days.
* Flows through the Langeled pipeline dropped by around 7 mcm to 37 mcm/day on Thursday and are expected to drop further to 20 mcm/d from Friday, continuing at a similar level until early June, Refinitiv analysts said.
* The drop is due to maintenance at the Troll field starting on Friday.
* "My guess is the latest cold weather, Troll maintenance starting tomorrow and some maintenance on liquefied natural gas (LNG) regasification terminals, are supporting the prices in Europe," a gas trader said.
* "Plus carbon keeps rallying, with power following. So the market retraced a bit from lows," the trader added.
* Prompt UK gas prices dropped to their lowest in nearly two years on April 23 due to a planned outage at the IUK pipeline between Europe and Britain.
* Send-out from LNG terminals is expected to decline by 11 mcm compared to the previous day. However, two new cargoes were confirmed to arrive in Britain within the next 10 days amid a wave of Qatari arrivals this month.
* Peak wind generation is expected to decline on Thursday to 6.2 gigawatts (GW) and to 1.3 GW on Friday, which could drive up gas-for-power demand.
* Temperatures forecasts were revised slightly lower for Thursday and Friday, Refinitiv weather data shows. But they are expected to raise closer to seasonal norm over the next seven days.
* The June gas contract was up 0.75 pence at 34.40 p/therm
* Day-ahead gas price at the Dutch TTF hub was 0.35 euro higher at 14.83 euros per megawatt hour.
* UK baseload power for day-ahead delivery was up 3.15 pounds at 46.40 pounds per magawatt hour and benchmark EU carbon edged up by 0.10 euro to 27.01 euros a tonne.
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