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Belgium: IUK nominations spike as natural gas Day-ahead basis gains 1.30p/th

08 May 2012 18:34:36 | esgm

Zeebrugge natural gas prompt contracts continued to shed value on Tuesday, moving in line with their NBP counterparts.

The prompt's decline was mainly due to approaching mild weather and a comfortable supply picture. Data coming from Norway's grid operator Gassco showed that gas was flowing through the Zeepipe from Norway to Zeebrugge at a rate of 34.15Mm³/day at 17:50 London time.

The bidirectional Interconnector pipeline went back to working in forward mode (to Belgium from the UK) on Monday, after it had worked in reverse mode - transporting gas to the UK from Belgium - during the weekend.

The Day-ahead outright contract settled at 58.075p/th, a loss of 2.05p/th session on session. Its equivalent basis remained in negative territory, but rose significantly as it closed at -0.15p/th, 1.30p/th higher than its Friday's -1.45p/th settlement.

Within-day nominations through the Interconnector amounted to 5.85Mm³ at 18:00 London time, according to IUK data.

The rally of the Day-ahead basis led nominations for Wednesday to an increase of almost 13Mm³ as they amounted to about 18.5 Mm³ at the same time. The remaining prompt bases were all much higher than Friday. The WDNW basis entered positive territory as it went up to 0.15p/th, a 1.575p/th increase session on session.

The bearish trend registered on the curve was attributed once again to the weakening of the Brent crude oil front-month contract, which continued to decline on Tuesday. DB

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