London, 28 July (Argus) — BG's UK realised gas price declined in the second quarter, while the firm repeated last year's summer shift towards US LNG deliveries.

The UK-based company realised 29.97p/th for its UK sales during the second quarter, down from 41p/th during the previous quarter and 36.23p/th during the first half of summer last year. The firm's realised UK price fell below market prices during the quarter, coming in 21.6pc below the average NBP day-ahead price and snapping a six-quarter run of above-market realisations.

BG attributed the lower realised price to the “profile of contracted sales” and said it had less gas available to sell in the UK spot market during the quarter.

UK day-ahead market prices rose to around 38.2p/th during the second quarter from 35.7p/th during the first three months of this year and 27.5p/th during the second quarter of last year.

BG's global gas production was down on the quarter, but up slightly on the year at 69.6mn m³/d.

The company continued its trend of increased LNG deliveries to the US during the summer, although the bulk of its 53 second-quarter cargoes were sold in markets outside the US. The company delivered 21 cargoes to the US during the second quarter, up from 14 during each of the winter quarters, but down from 26 during the second quarter of last year.

In April and May, BG delivered a total of 14 cargoes to US ports, 12 of which were supplied under long-term arrangements at an average price of $3.68/mn Btu and two of which were delivered spot at $4.28/mn Btu. During the first quarter, BG's long-term US LNG imports landed at an average $5.02/mn Btu, while spot sales to US firm Excelerate landed at an average price of $4.62/mn Btu.

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