UK prompt gas prices rebounded Tuesday following mid-morning supply losses from Norway, as oil and carbon staged a recovery which boosted forward prices and set an upbeat tone to trading.
Gas for delivery today rose 0.6 pence/therm to 58.25 p/th as Norwegian imports dropped after the Kollsnes gas processing plant experienced a power outage earlier this morning, cutting 8 million cubic meters/day of supply from the UK.
The plant's power supply resumed shortly after the outage and flows via the Langeled pipeline recovered to about 17 million cu m/d, just short of pre-outage levels.
Rising optimism in the ability of European Union policymakers and investment banks to solve Greece's sovereign debt crisis supported oil and carbon prices Tuesday, which fed through to forward contracts.
August Brent crude traded 48 cents higher at $106.47/barrel earlier, boosting winter 2012 gas prices 0.4 p/th at 69.2 p/th in a tentative sign of a change in direction following a string of heavy losses last week.
The system was 3 million cu m/d long of gas at midday as National Grid forecast demand at 212 million cu m/d and supplies at 215 million cu m/d.
Total LNG flows were at 61 million cu m/d with South Hook LNG supplying the greatest proportion of overall flows.
Four LNG tankers are slated to berth at the Milford Haven import terminals over the next two weeks.
The Qatari tanker Lijmiliya arrives today at South Hook, followed by the Al Kharaitiyat on July 2, and the Mekaines on July 5.
The Murwab tanker berthes at Dragon LNG on July 2.
