EUROPE GAS prices extend gains amid LNG worries and colder weather
The European and British wholesale prices of gas extended their gains from the day before, due to colder weather forecasts. They also increased in order to maintain competitive pricing for LNG deliveries with Asia.
LSEG data show that the March contract for the Dutch TTF hub rose 0.80 euros, or $13.94/mmBtu to 45.73 Euros per Megawatt Hour (MWh) at 0920 GMT. It had traded as high as 46.45 Euros/MWh on Friday.
The TTF contract for April was up 0.35 euros at 45.85 Euros/MWh, and the contract for the day ahead gained 1.25 Euros to 46.55 Euros/MWh.
The British April contract rose by 2.40 pence to 109.55 pence/therm. The day-ahead contract also increased by 0.75 pence to 110 p/therm.
After falling to the lowest level this year, prices continued to rise from Thursday.
In a daily report, Engie EnergyScan analysts said that fears of a decline in European LNG imports were the real reason for price support.
Due to Europe's higher prices than the main competitor market Asia, LNG tankers chose Europe as their destination. However, this price differential has decreased as European prices have fallen.
Analysts at Engie said: "We suspected European LNG imports would be at risk due to the weak freight rates, which reduce the advantage that US LNG exporters have in Europe."
Equinor announced on Friday that its Hammerfest LNG facility in Arctic Norway - Europe's largest - will be out of service for four days starting March 10.
The maintenance shutdown is scheduled to last from April 22 through July 10, this year.
Wayne Bryan, LSEG analyst, said that the demand for heating will increase next week. The latest long-term forecasts have also been revised colder since the middle of March.
Gas Infrastructure Europe data shows that EU gas storage sites are currently 39.54% full. This is a decrease of 24 percentage points compared to the same period last year.
The benchmark carbon contract in Europe was down by 0.56 euros at 72.22 euro per metric ton. Nora Buli, reporting from Oslo; Nina Chestney, editing)
(source: Reuters)
