UK GAS: Winter gas prices fall despite confirmed storage limits

Chemical News: UK GAS: Winter gas prices fall despite confirmed storage limits

https://www.chemnet.com Mar 30,2015 Platts
UK Winter 15 gas prices fell Friday morning despite confirmation of limits on the country's Rough gas storage facility that will restrict the amount of gas that can be stored ahead of next winter by around 1 Bcm.

Winter 15 gas traded at 52.45 pence/therm, down 0.65 p/th from Thursday's close.

Winter was falling even faster than summer, which was down 0.20 p/th at 46.15 p/th.

The summer/winter spread was therefore narrowing by 0.45 p/th.

Reductions of storage capacity ought theoretically to increase the price of winter and widen the summer/winter price spread.

However Centrica Storage's announcement late Thursday that it would limit Rough was just a confirmation of what the company had already indicated the previous week, so it did not change the situation.

On the prompt, UK within-day traded at 48.30 p/th, down 0.10 p/th from the previous day's day-ahead close.

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