Weak demand supported the UK system yesterday - helping it remain comfortable. At the same time, strong flows from Langeled helped to ease market worries about the extension to the outage on the Norwegian Troll A platform.
Weak demand resulted in a comfortable UK gas system yesterday, which was shown through the drop in storage withdrawals. A clear drop in prices, however, was avoided through the news that the outage on the Troll A platform would continue.
News broke on Friday that the outage at the Norwegian Troll field would last until 1st April (instead of 4th February) - which supported European spot and near curve prices. NBP ICE February 2013 prices rose by 2.01% at close.
The UK gas system sat more comfortably yesterday, with a drop in storage withdrawals after higher domestic production and BBL flows. Pressure was felt after news that the Elgin-Franklin fields are likely to restart in mid-February.
As a result of the unplanned outage at the Norwegian Troll field lasting longer than expected, total gas flows from Norway to Europe dropped yesterday - down 30 mm cm/day compared to last week's levels.