British gas prices turned up on Tuesday afternoon after supply from liquefied natural gas (LNG) terminals dropped, leaving the system undersupplied as demand rose, while upbeat economic data drove curve contracts higher.
Within-day gas prices for Tuesday delivery rose to 59.00 pence per therm, while Wednesday gas added 0.50 pence to 58.90 pence.
Britain’s gas system was around 5 million cubic metres per day (mcm/d) undersupplied after flows from the Isle of Grain LNG terminal fell close to zero and input from the South Hook terminal slipped by a quarter to around 30 mcm/d, National Grid (LSE: NG.L – news) data showed.
At the same time gas demand ticked up from levels seen earlier in the session, adding to pressure on supply margins.
Demand increased to around 7 percent below seasonal norms from minus 15 percent in the morning.