UK day-ahead gas soars to 80p/th on cold

London (Platts)--15Nov2005

Day-ahead UK gas prices soared to 80p/th Monday, up from an average of
around 33p/th during October and the early days of November. 
     The prices came as cold weather hit the UK, with a burst of frost Monday
morning. But demand was not very high, at 320-mil cu m, or only 59% of a peak
day level, according to National Grid. That left some wondering how high
prices could get later this winter if the weather turns even colder (see
market commentary). 
     One factor may have been a continuing production reduction at the
Britannia gas field, traders said. Another was the failure of continental gas
traders to supply the market.

     Britannia due back Thursday/Friday 
     Gas production at the Britannia gas field in the UK North Sea is due back
to full capacity late Thursday/early Friday, the operator said Monday. The
field, which is jointly operated by ChevronTexaco and ConocoPhillips, is set
to produce 500-mil cu ft/day (14-mil cu m/day) until then, compared with the
fields' daily peak output capacity of 815-mil cu ft/day (23-mil cu m/day). 
     One trader estimated production rates before the failure at around
670-mil cu ft/day (19-mil cu m/day), which meant that field production is now
at about 75%. Buyers of Britannia gas include Conoco, Mobil Gas Marketing,
Powergen and Total.

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