LONDON (Reuters) - British prompt gas prices fell on Monday following an increase in imports from Norway where a key gas field and production facility were ramping up output following maintenance.
Gas for within-day delivery fell to a two-week low at 59.75 pence per therm on Monday morning, but traded up slightly to 60.00 pence by 1114 GMT.
"Kollsnes is coming back at the moment, Langeled is at 66 mcm (million cubic metres) to the UK, near its maximum," one UK gas trader said, referring to the restart of Norway's Kollsnes gas processing plant following maintenance and a rise in Norwegian gas flows to Britain through the main import pipeline.
The processing facility, which shut down for maintenance on September 10, was due to restart on Sunday but was ramping up more slowly than expected, with full capacity due to be reached on Tuesday morning.
Nevertheless Norway was sending around 10 mcm per day more to Britain on Monday, weighing down prompt prices.
Day-ahead gas prices also fell, shedding 1.25 pence compared with Friday's closing levels at 59.95 pence.
Early winter season contracts, October-December, also traded down after forecaster WSI predicted weather would be milder than usual in those months, capping the demand for gas in heating systems.
Two liquefied natural gas (LNG) tankers were also expected to arrive in Britain in early October, adding to the bearish picture for the month-ahead contract.
October gas fell 0.90 pence to 58.85 pence per therm while December shed one penny to 65.15 pence.
Further out, Britain's benchmark front-season contract fell in line with the weak crude market, where Brent futures dipped below $110 per barrel.
The winter 2012 gas price, in its final trading week, slipped 1.10 pence to 64.10 pence.
In Britain's over-the-counter power market, prices were stable at 42.95 pounds per megawatt hour.
The restart of two nuclear power units over the weekend helped keep prices steady as supply margins improved.
EDF Energy's 610-MW Heysham 1-2 and Magnox's 490-MW Wylfa 1 units both resumed output at the weekend.
(Reporting by Karolin Schaps; Editing by Catherine Evans)
Source: http://news.yahoo.com/uk-prompt-gas-falls-norway-ramps-exports-114407970.html
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