LONDON: British gas prices rallied on Tuesday, extending the previous session's gains as more unplanned outages affected Norwegian production.
* Britain's day-ahead gas price rose by 1.40 pence to 28.00 pence per therm by 0810 GMT.
* Gas for immediate delivery was up by 1.35 pence at 28.10 pence per therm.
* After an unplanned outage at Norway's Nyhamna gas processing plant that lifted prices on Monday, one more unplanned outage on Norwegian gas production supported prices on Tuesday.
* The Aasta Hansteen gas field outage affected 12 million cubic metres (mcm) per day of volume output on Tuesday, adding to a cut of 21 mcm per day caused by Nyhamna outage, Gassco data showed.
* The Nyhamna outage is expected to last 7-10 days, while the Aasta Hansteen outage is predicted to end on Wednesday.
* Moreover, the ongoing planned outage on the Troll field is affecting 24 mcm per day on Tuesday and Wednesday, before the impact eases.
* Liquefied natural gas (LNG) sendout was also lower, down by 14 mcm to 13 mcm on Tuesday.
* Wind generation was also expected to drop to 4.6 gigawatt (GW) on Tuesday and then down to 3.4 GW on Wednesday, Elexon data showed. Total UK wind capacity is 12.1 GW.
* Reduced wind production may increase gas demand for power generation.
* As a result, Britain's gas system was 18.5 mcm undersupplied on Tuesday, with demand forecast at 175.8 mcm and supply at 157.3 mcm, National Grid data showed.
* Curve contracts also gained value. The UK August delivery price rose by 1.07 p to 27.50 p/therm. The winter delivery contract was up by 0.50 p at 49.85 p/therm.
* The UK baseload power price for day-ahead delivery increased 3.20 pounds to 40.20 pounds per megawatt hour (MWh).
* The day-ahead gas price at the Dutch TTF hub rose by 0.30 euro to 10.50 euros per MWh. The August contract was up 0.45 euro at 10.80 euros/MWh.
* The benchmark Dec-19 EU carbon contract was up by 0.18 euro at 27.10 euros per tonne.
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