* UK exports 42 mcm/day to Europe, driven by weather,
heating demand
* Bank sees hub and oil-indexed prices converging next year
* More incoming LNG from Qatar, Yemen, supplies loom from
Asia
LONDON, Nov 14 (Reuters) - British spot gas rose more
than 7 percent on Monday morning as exports to mainland Europe
increased and supply fell short of demand, while curve contracts
were buoyed by government reshuffles in Greece and Italy.
Gas for immediate delivery surged to 57.60 pence per therm
as utilities in Europe leaned heavily on imports from Britain as
heating demand increased, sucking 42 million cubic meters/day
(mcm/day) away from the UK.
Day-ahead gas added 1.35 pence to 57.90 pence,
spurred higher by bullish spot prices and weather-driven demand
on the continent.
Investment bank Goldman Sachs retained its long
recommendation on UK gas prices in the fourth-quarter next year,
citing improved demand forecasts and narrowing gaps between spot
and oil-indexed contracts.
It forecast Q4 2012 gas prices at 69.6 pence per therm,
compared with current levels of 57.2 pence, according to broker
ICAP.
Month-ahead gas added slight gains at 62.55 pence despite
relaxing demand in Asia releasing flexible volumes of liquefied
natural gas (LNG) to prospective European buyers.
Late last week at least three LNG cargoes were offered into
northwest Europe at some of the most favourable prices seen in
months, trade sources said.
On top of that, two more shipments of LNG are expected in
northwest Europe over the next week.
Benchmark summer 2012 gas gained 0.10 pence at
60.90 pence.
WEATHER
Britain's Met Office forecast continued mild weather in the
short to medium-term.
DEMAND AND SUPPLY
The gas network was about 6 mcm/day short of gas with demand
pegged about 5 percent below seasonal norms.
Norwegian flows via the Langeled pipeline picked up to 73
mcm/day, while output from LNG terminals rose to 39 mcm/day.
POWER
Day-ahead baseload rose 2.95 pounds at 46.95 pounds per
megawatt hour on Monday, tracking gas market sentiment.
GAS-Please click on the following for information about UK
and Belgian prices, field maintenance and field start-ups.
UK natural gas prices <0#NBPGAS-RTR>
Belgian natural gas prices <0#ZEEGAS-RTR>
North Sea field start-ups
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POWER
UK: baseload prices <0#ELBUK-RTR>, outages
report
FRANCE: baseload prices <0#ELBFR-RTR>, peak <0#ELPFR-RTR>
market report, Powernext,
Spectron baseload <0#FRBSLD-SPC>, off peak
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nuclear outages: report, offline
percentage EL-FROUTAGE-PC, offline capacity (MW)
EL-FROUTAGE-MW
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SWITZERLAND: outages, reservoir levels
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