UK gas prices rose on a forecast of a cold snap later in the week and lower supply from the North Sea, while power firmed after a nuclear reactor came offline, traders said early Monday.  Gas prices for Tuesday rose to 29 pence per therm at 1043 GMT, up 2 pence compared with day-ahead contracts late on Friday.  Balance of the week contracts — for gas delivery the rest of the week excluding the present trading day were up 3.45 pence to 28.80 pence, while gas for any week day, next week delivery was up 4.40 pence to 30.40 pence.

“The prices are up on the weather, and the banks are jumping on it,” one gas trader said.

The Met Office forecast British night time temperatures to drop to lows of minus three degrees Celsius on Wednesday and minus two degrees on Thursday and Friday, compared with plus one degree on Monday and plus six degrees on Tuesday.

While this supported balance of the week contracts, forecasts of low temperatures and frost early next week pulled up week day, next week contracts.

The system was also short early Monday with flows into St. Fergus dropping to 60 million cubic metres per day (mcm) compared with 93 mcm flows last week, the National Grid website showed.

Supply from liquefied natural gas (LNG) terminals were also low, with Dragon LNG flowing less than 5 mcm and Isle of Grain around 10 mcm.

But more LNG tankers were expected to arrive in Britain, with the Mekaines scheduled to berth at South Hook on Dec. 10th.

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