(Reuters) - British prompt gas prices hit a four-month low on Monday as Norwegian exports rose toward winter levels despite weak demand with temperatures of up to 25 degrees Celsius expected to hit parts of the UK this week.
Gas prices for this week fell 4.15 pence as rising temperatures, falling demand and pipelines packed with gas dragged the contract to a low of 53.85 pence per therm last seen on January 24, price data showed.
Norway boosted deliveries to more than 80 million cubic metres/day on Monday - a flow rate more typical during higher-demand winter months, than the start of summer - while consumption dropped as households turned down central heaters.
Temperatures are expected to reach highs of 25 degrees Celsius in the southeast and most of England and parts of Wales and Scotland will see slightly lower levels, but still above-average for the time of year.
By contrast, UK temperatures over the past few months have largely been below their historical average.
Forecaster Weather Services International (WSI) said on Monday that average summer temperatures across Europe will be higher than normal between June and August, with the exception of south-eastern parts of the continent.
"WSI expects temperatures for the upcoming period (June-August) to average higher than normal across the Nordic region, UK, and the northern mainland, with below-normal temperatures confined to the southeast," it said.
The country's pipeline network was oversupplied by 6 mcm/day on Monday.
Norway boosted exports to Britain following the completion of maintenance at its Ormen Lange gas processing facility last week.
Norway's Petroleum Directorate expects total offshore gas production in June to fall from May. Flows via Norway's Langeled pipeline - Britain's main sub-sea import route - may drop to 25 mcm/day in June, analysts from Point Carbon said.
Langeled pumped more than 60 mcm/day at 10:30 GMT, flow data from National Grid showed. Last year, Norwegian gas exports to Europe increased from May to June.
Gas supply from Conoco Phillips' Theddlethorpe terminal was also cut as one-week maintenance work which shut down the facility commenced last Thursday.
Low gas demand also helped push down prices with consumption levels slipping 13 percent below seasonal norms.
Day-ahead gas also fell on Friday, shedding 1.50 pence to 54.10 pence per therm.
The arrival of two new liquefied natural gas (LNG) tankers from Qatar at UK ports expected later this month added to downward sentiment.
Another two tankers from Qatar will arrive at Belgium's Zeebrugge terminal in late May-early June.
Further out, benchmark front-season prices hovered at four-month lows as Brent oil prices remained in the doldrums with Greece's possible exit from the euro weighing on sentiment.
The UK winter 2012 gas contract fell 0.30 pence to 65.10 pence.
In Britain's wholesale electricity market prices tracked losses in the gas market, defying the impact from a loss in French power imports scheduled from Monday.
The 2,000-megawatt (MW) interconnector to France is planned to shut down for maintenance from Monday until May 29.
British baseload day-ahead power slipped over one pound to 42.05 pounds per megawatt-hour.
