Monday, 16 August 2010

Plentiful LNG flow weakens UK gas prices

British commercial gas prices slipped on early Monday on more liquefied natural gas (LNG) cargoes due to arrive and doubts that the Swiss-Italian Transitgas pipeline
will restart by the end of August.

Gas for Tuesday delivery fell to 41.30 pence per therm at 0958 GMT, down 1.20 on the previous session's day-ahead price, while September declined 0.80 pence to 38.80 pence ($6.06 per mmbtu).

"LNG stocks are pretty healthy as we had three cargoes on Friday, Saturday, Sunday adding 320 mcm (million cubic metres). The terminals are going to have to flow reasonable levels to make room of the tankers which are coming," one gas trader said.

The gas system was long early on Monday, with flows from Dragon LNG turning up to 5 mcm/day from zero, while South Hook increased supply to 25 mcm/day from 20 mcm/day, according to National Grid data.

1 comment:

  1. The small-scale LNG plant allows localized peak- shaving to occur – balancing the availability of natural gas during high and low periods of demand. It also makes it possible for communities without access to natural gas pipelines to install local distribution systems and have them supplied with stored LNG.