UK prompt gas prices surge as Interconnector fails briefly

London (Platts)--1Feb2006

UK gas prices for within-day rose by up to 6p/th Wednesday as a major
import line, the UK-Belgium Interconnector, saw reduced flows for a couple of
hours after a compressor failed at Zeebrugge. 
     A problem very early in the gas day sent the within-day price up from
60p/th to 67p/th, but soon after the problem was solved it settled back to
57p/th. A trader said it was better to pay up early, in case the failure
lasted for longer, which would have added much more to the price. 
     Interconnector UK said it was doing all it could to ensure it met
customers' demands by the end of the day, but said the line was not running at
full capacity anyway.
     Day-ahead prices were similarly affected for the same reasons, starting
and ending the morning session at 60p/th. March, the new front month, got off
to a weak start, trading at 59.8p/th, over 1.5p/th down on the day. This
summer and next summer were also down, at 47p/th each, while winter 06 was
down to 76.85p/th, over a penny down on the day. Winter 07 did not trade.

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