British gas prices were firm early on Wednesday as cold weather was forecast for the weekend, though ample supply capped upside, especially as liquidity was declining in the run-up to Christmas.  Gas for Wednesday stood at 32 pence per therm, up 1.50 pence from within day contract late on Tuesday. Working day next week put on 0.60 pence to 32.10 pence and January added 1.30 pence to 32.60 pence.

“Cold weather is predicted for this weekend, which people are using to push things up,” said a trader. “There’s more uptake. Still there’s a lot of gas around. Fundamentals are still bearish.”

The National Grid said the system was short early on Wednesday, with Norwegian input via the Langeled pipeline down at around 44 million cubic metres per day from around 50 million and imports via Interconnector down to around 10 million from 20 million. A spokesman from Statoil declined to comment on the slowdown in flows via the Langeled pipeline.

Input from LNG terminals also slowed, despite many cargoes expected to arrive in the country before the year end. South Hook LNG flows slipped to about 30 million from above 40 million and input from Dragon to 7 million from more than 10 million. Isle of Grain added only 2 million.

Along the curve, the 2010 first quarter was up 0.85 pence to 32.75 pence, pushed up by stronger prompt prices.  The 2010 winter rose 0.50 pence to 31.20 pence, while the 2010 winter climbed 0.70 pence to 46.70 pence.

In the power market, prompt prices edged up, supported by firm commercial gas prices and higher exports to Continental Europe.

Baseload electricity for Thursday stood at 35 pounds per megawatt hour, compared with 34.75 pounds for day ahead contracts late on Tuesday.

The first quarter stood at 35.95 pounds, while the 2010 summer fetched 36.05 pounds.

The National Grid data showed nearly 2,000 megawatts were flowing to Continental Europe since early on Wednesday.

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