RTRS:UK gas rises as weather due to turn colder again
* South Hook LNG flows drop on lack of cargoes
* Colder weather to bring snow, frost - Met Office
* UK grows dependence on Qatari LNG
LONDON, Jan 20 (Reuters) - UK prompt gas prices traded at a four-day high on Friday, driven by forecasts for colder weather next week and a lack of recent liquefied natural gas (LNG) deliveries which squeezed flows from Britain's LNG terminals.
Gas for day-ahead delivery rose to 53.30 pence per therm at 1109 GMT, up 1.20 on the previous session, while within-day gas traded up 1.45 pence at 53.45 pence.
Gas supply from the South Hook LNG terminal was below average levels at just below 20 million cubic metres/day, which tightened supply margins.
"The low arrival frequency currently is likely to be the reason for the low send out rate from South Hook," said analysts at Point Carbon, a Thomson Reuters company.
Despite lower LNG flows, the market was balanced and capped further gains on the prompt.
Weather forecasts for next week turned cooler as overnight frost is expected to return and drive demand for gas in heating systems. "There is also a risk of colder weather becoming established across the UK, with snow in places and widespread overnight frosts," Britain's Met Office said in its 6-15-day forecast.
Month-ahead gas also tracked gains closer in, trading up one penny to 54.00 pence, while March rose 1.15 pence to 53.55 pence.
Curve contracts also rebounded on some forecast technical buying as the benchmark front-season contract had slipped below the 51-pence mark earlier this week.
Summer 2012 gas rose 0.50 pence to 52.50 pence on Friday morning.
Qatari LNG ships accounted for nearly all LNG cargoes to Britain over the last five months of 2011, Waterborne data showed, underlining a growing dependency concern.
POWER
Month-ahead power prices tracked gains on the equivalent gas contract as colder weather is likely to drive up both power and gas demand.
February baseload power rose 55 pence to 41.70 pounds per megawatt-hour.
Monday power prices were likely to drop as EDF Energy's heysham 1-1 nuclear power reactor was expected to restart after a refuelling outage. (Reporting by Karolin Schaps)
