Lower Venezuela HBI prices see volatility in exports

Near-term UK wholesale natural gas prices were up Monday due to unplanned outages, with longer-term NBP contracts narrowing spreads in early trade after last Friday's Rough announcement as the prompt climbed in value.

National Grid 10:00 am (0900 GMT) figures showed the UK gas system balanced, with physical flows of 187 million cu m/d slightly behind demand forecasts of 189 million cu m.

Within-day and day-ahead were seen trading at 33.50 pence/therm and 33.60 p/th respectively Monday morning compared to the day-ahead close last Friday of 32.45 p/th.

Norwegian gas operator Gassco reported a 11.9 million cu m/d volume impact at the Heimdal asset for Monday's gas day after the facility suffered from process problems Sunday afternoon.

Norwegian gas flows into the UK were nonetheless broadly steady at 62 million cu m/d, split between Easington and St. Fergus at 12 million cu m/d and 45 million cu m/d respectively.

On the UKCS, the North Morecambe sub-terminal will be unavailable until the beginning of Tuesday's gas day due to a technical process issue, owner and operator Centrica said, after tripping early Saturday.

Further adding to the spot price increase, regasification from the South Hook LNG terminal fell over the weekend and was running at 24 million cu m/d. The Qatari Zarga LNG tanker is set to berth at South Hook Monday/Tuesday.

Exports from the UK to Continental Europe remain high for the time of year with IUK 10:00 am export nominations at 52 million cu m.

Longer-term NBP contracts have moved in different directions in early Monday trade, with front-month regaining value as the front-season was largely steady.

Front-month August was seen trading at 33.85 p/th against the previous close of 32.925 p/th -- the Winter 16 contract was dealt at 46.90 p/th in comparison to the 46.80 p/th assessment from last Friday.