EUROPE GAS-Prices firm as temperatures drop

Dutch and British wholesale price rose on Monday morning due to the colder weather forecast.

LSEG data shows that the benchmark front-month contract for the Dutch TTF Hub rose by 1.00 euros to 43.15 Euro per Megawatt Hour (MWh), which is $13.51/mmbtu by 0921 GMT.

The British day-ahead contract increased by 3.00 pence to 109.15 cents per therm.

A trader stated that the "main reason (for today's rise) is (the temperature runs this morning)."

The trader said that although wind power generation is also expected to decline, the recent price increase still looks overdone.

He said that for UK contracts, 109.00 per therm was a technical high, which offered some resistance.

In a morning report, LSEG analyst Timothy Crump predicted that the demand for local distribution zones (LDZs) in Britain would increase by 18 million cubic meters (mcms) per day, for day-ahead contracts, and by 52 mcm/day, for working days, next week.

Gas storage is being emptied as a result of the colder weather, and increased demand.

Gas Infrastructure Europe (GIE), a European gas infrastructure company, reported that European sites last week were 93.58% filled, a decrease of 0.20 points compared to the previous day.

Even so, the flow of gas into Europe and Britain is marginally higher on Monday.

Gassco, the infrastructure operator, reported that on Monday morning, nominated Norwegian gas flow to Europe and Britain reached 346 million cubic meters (mcm), their highest level since August 5.

Gazprom, the Russian gas producer, said it would ship 42.3 mcm via Ukraine to Europe on Monday compared to 42.2 mcm last Friday.

In a recent note, Kaushal RAMESH, vice president of Rystad Energy, said that the increase in European imports was likely due to a pre-winter stocking.

The benchmark contract on the European carbon markets rose 0.17 euros to 68.24 euro per metric ton.

(source: Reuters)