UK gas prices off early highs as Norway supply rises

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British gas contract prices began Monday firmer than Friday’s close, after
very erratic supplies of Norwegian gas over the weekend, but eased later as
Norway’s biggest gas export facility increased output.

Data from National Grid showed big swings in Norwegian gas supplies to
Britain over the weekend, but flows of fuel through the Langeled pipeline
from Kollsnes into eastern England had bounced back to 60 mcm/day early on
Monday. Norwegian North Sea gas infrastructure operator Gassco said on
Monday it expected Kollsnes, which can export up to 143 million cubic metres
of gas a day, to return to full capacity on Monday after the plant shut last
Thursday, helping ease concerns about supplies. “The market was a bit
bullish early in the morning but then we have retraced,” said one trader,
adding that below average demand because of mild weather for the time of
year should take the strain off Britain’s gas storage sites and weigh on
prices.

http://af.reuters.com/article/energyOilNews/idAFLDE70N0ZP20110124

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