UK prompt gas rises after outage at Norway's Kolsness plant
* Kollsnes to resume full capacity on Friday
* LNG deliveries scarce, send-out drops to 14 mcm/day
* UK gas network undersupplied by 12 mcm/day
LONDON, Oct 4 (Reuters) - British prompt gas prices rose on Thursday after a power failure temporarily halted output from Norway's Kollsnes gas processing plant that feeds pipelines supplying the UK.
The price of day-ahead
gas was 0.05 pence higher at 61.40 pence per therm at 1150 GMT compared with Wednesday's session as power at the Kollsnes facility was quickly re-established and production started to ramp-up, cutting short an earlier rally.
Norway's gas grid operator Gassco initially spooked UK gas traders by warning that Kollsnes output could drop by 22 million cubic metres/day (mcm/day), on top of an existing 30 mcm/day reduction caused by maintenance reported on Wednesday.
Gassco expects Kollsnes to return to its full processing capacity of 145 mcm/day on Friday.
Britain's gas market also faced tight supplies due to low liquefied natural gas (LNG) deliveries from Qatar, reducing total send-out rates from import terminals by 8 mcm to 14 mcm versus Wednesday as stocks dwindled.
"The Kollsnes news caused a bit of a panic earlier but I think that the system is still tight," one trader from a European utility said.
Output from domestic North Sea fields dropped slightly to 97 mcm/day compared with the previous session.
These factors caused the gas system to be undersupplied by 12 mcm/day while demand was pegged about 15 percent below seasonal norms at 186 mcm/day.
Month-ahead gas rose 0.05 pence to 62.50 pence while December gas was trading little changed at 64.70 pence.
Further out on the curve, front-season gas
little changed at 69.25 pence.
(Reporting by Oleg Vukmanovic; Editing by Anthony Barker)
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