LONDON, Feb 26 (Reuters) - Prompt British gas prices remained stable on Friday, while contracts for the next few months eased as support seen earlier in the week disappeared, traders said.
Prices for March fell 0.40 pence to 32.50 pence, while the April and May contracts both dropped nearly a penny to 31.40 pence and 30.70 pence respectively, according to one broker.
Contracts for gas delivery over the six-month summer period fell to around 31 pence on Friday, after being lifted from below 31 pence to around 31.65-31.75 pence for the last three days.
"We have had a big utility who has been buying the Summer-10 gas contract all week and that has given support to the March-10 and other contracts as well," one trader said.
"The buyer is not there today, so no support for the time being." Gas prices remained stable on the prompt. Day-ahead gas contracts have traded within a range of 32-34 pence range all week.
Friday was no exception, with contracts for next Monday trading between 32.5 pence per therm ($4.98 per mmbtu) and 33.0 pence, compared with a previous day-ahead contract close around 32.75 pence.
The system was balanced, with big flows from Norway and the South Hook liquefied natural gas terminal as part of phase two commissioning at the facility in Wales. [ID:nLDE61O2H9]
Friday demand was forecast to be 365 million cubic metres/day, compared with seasonal norms of 325 mcm/day, but much lower than the 400 mcm/day demand seen in early February, the National Grid website showed.
The milder weather this week has helped reduce reliance on gas from storage, partly allaying fears over stock levels that are much lower than most years after a cold winter dogged by Norwegian production problems. [ID:nLDE61O18J]
But another cold weather snap could reignite concerns over stock levels in March, supporting prices for summer and spring.
In the power market, baseload power for Monday traded around 35 pounds per megawatt hour, while baseload electricity for Saturday dipped 1.25 pounds to 33.75 pounds.
Centrica's big Langage gas-fired power plant is expected to restart on Saturday, boosting supply, after stopping on Tuesday for modifications to the new plant. [ID:nWLB8547]
The day-ahead auction price on Britain's N2EX wholesale power exchange was set at 34.25 pounds for Monday, a similar level to the price set for the last four days.
