Prompt Prices Jump on Norwegian Outages
British prompt gas prices jumped on Thursday after gas production in Norway was hit by unexpected outages at its key gas processing plant and several fields.
Gas for immediate delivery rose 1.48 pence or 5.01 percent to 31.03 pence per therm by 1234 GMT, while day-ahead contract gained 1.4 pence or 4.7 percent to 31.00 pence/therm.
Norway's gas production on Thursday was hit by unexpected outages at its key gas processing plant Kollsnes and the biggest gas field, Troll, operators said.
Production capacity was expected to be reduced by 22 million cubic metres (mcm) per day on Thursday, with both Kollsnes and Troll scheduled to shut down for annual maintenance from May 28 until June 9.
The supply in Britain has been already tight due to exports to Belgium rising to near maximum levels of 44 mcm/day, and offsetting lower domestic demand due to warmer weather, traders said.
Gas contracts further out on the curve gained on the support from Brent oil futures, which rose to above $50 a barrel on Thursday, the highest since October, while weakening of sterling also helped.
Contract for gas delivery next winter, was trading at 36.30 pence/therm, 0.75 pence or 2.1 percent up.
In the Netherlands, the day-ahead gas price at the TTF hub rose 0.42 euro/MWh or 3.2 percent to 13.60 euro/MWh.
European benchmark year-ahead carbon contract firmed 0.25 euro or 4.3 percent to 6.12 euro a tonne.
(Reporting by Nerijus Adomaitis in Oslo)
