Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry


Gas plunges in UK as key pipeline link to shut

LONDON (Reuters) — Prompt gas prices in Britain fell sharply on Tuesday as a major gas pipeline with mainland Europe prepared to shut, trapping surplus gas in the UK until June 29.

British within-day gas price was down by 1.40 pence at 33.70 pence/therm at 1006 GMT.

Day-ahead gas fell 2.65 pence or 7.49% to 32.75 pence per therm in response to the shutdown of the Britain-Belgium gas link due on Wednesday, coupled with lower forecast demand at that time.

The pipeline shutdown for annual maintenance until June 29 is the main bearish driver because it removes a key outlet for Britain to export surplus gas, traders and analysts said.

Despite falling prices, the gas system is undersupplied by 9.9 MMm3, with demand forecast at 190.6 mcm and flows at 180.7 mcm/day, National Grid data showed.

Falling deliveries from Norway through the Langeled pipeline to 18 MMm3/day from around 34 MMm3 on Monday left the system facing shortfalls.

One trader said low gas prices would likely fuel demand by gas-fired power plants during the weekend. Higher forecast wind farm output on Thursday and Friday could constrain gas-for-power consumption, he added.

Reporting by Oleg Vukmanovic, editing by David Evans


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Business Trends
-
In the business of hydrocarbon production, accurate accounting of produced fluids and gases is critical from a process control, management and fiscal perspective.
Editorial Comment
-Adrienne Blume
The US East Coast will send out its first LNG exports in early 2018 as Dominion Energy’s Cove Point LNG export facility in Lusby, Maryland becomes operational.


The New LNG Imperative

Register Now

The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.

November 29, 2017 10am CST

View on Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Company.