LONDON, June 6 (Reuters) - British prompt gas prices rose on Wednesday as greater storage refills and higher planned exports to Europe squeezed supplies from Norway and domestic North Sea fields.
Day-ahead prices gained a penny to 55.85 pence per therm as supply fell short of demand, in part due to ongoing flow reductions via Norway's main export route to Britain, the Langeled pipeline.
Point Carbon market analysts forecast the contract to remain in its current price range after correctly predicting the extent of gains earlier in the session.
The country's pipelines were undersupplied by 11 million cubic meters/day (mcm/day), despite demand running 30 percent below seasonal norms at 198 mcm/day, data from National Grid showed.
UK Continental Shelf output steadied at 117 mcm/day. Liquefied natural gas (LNG) terminals pumped 67 mcm/day into the transmission system, slightly higher than last week, while imports from the Netherlands improved to 10 mcm/day.
But rapid inventory rebuilds and rising exports to continental markets outweighed the marginal gains in supply.
Exports to Europe are nominated at 23 mcm/day, level-pegging with earlier levels, but could increase sharply on Friday as terminal maintenance in Germany curtails deliveries from Norway and boosts demand for UK gas, Point Carbon said.
Two additional LNG tankers will deliver to the UK on June 10 and June 23 from Algeria and Qatar, respectively.
"The prompt market is well supported by the supply shortage caused by Norwegian production staying at lower levels," a trader from a major UK utility said.
Norway's Statoil is turning down output because it is nearing its quarterly production targets, he added.
Further forward, the benchmark winter 2012 gas contract rose almost half a penny to 65.85 pence.
WEATHER
The UK's MetOffice said that the weather outlook over the fortnight was mixed, with unsettled weather initially dominating until mid-June, when there are indications of stable weather for southern and eastern parts.
"Towards mid-June, there are some indications of slightly less unsettled weather, especially for southern and eastern parts. Temperatures generally below average, and feeling particularly cool in strong winds," it said.
POWER
Baseload UK power prices for day-ahead delivery traded at 42.60 pounds per megawatt hour.
