EUROPE GAS-Prices reverse earlier gains after Ukraine transit deal report
The Dutch and British gas wholesale prices dropped on Thursday, reversing gains made earlier, following a report in the media that Ukraine had agreed to transport Azerbaijani natural gas to Europe. The report was not immediately verified.
By 1334 GMT, the benchmark front-month contract for the Dutch TTF hub had fallen by 0.84 euros to 34.25 Euro per megawatt hour (MWh), which is $11.16 mmBtu.
LSEG data shows that the November contract is 1.69 euros lower, at 35.74 Euro/MWh.
The day-ahead contract on the British market fell from 80.00 pence to 3.35 pence per therm.
Ukrainska Pravda, a local news outlet in Ukraine, reported on Thursday that Ukraine had agreed to temporarily transit Azerbaijani natural gas to Europe after terminating its transit agreement with Russia.
The transit agreement, which allows Russian gas to be transported through Ukraine into Europe, expires at the end this year. Market participants have been looking for ways to maintain the flow of supply.
Traders stated that this led to the market reversing gains made earlier today. They also said the news that Egypt plans to restore normal production at gas fields by the summer of 2025 contributed to the lower prices.
One trader stated that "It's a combination of (bearish) headlines."
The drop in prices reversed gains made earlier today when the market was higher because exports from Norway were down due to increased maintenance.
LSEG data shows that total Norwegian exports will be down by 13 million cubic metres/day compared to the previous day, as maintenance at Kollsnes Processing Plant ramps up.
The supply of gas to Europe from Russia via Ukraine has been stable despite the attacks on Ukraine's power system.
Gazprom, a Russian gas company, said that it will send the same amount of gas via Ukraine to Europe on Thursday as it did on Wednesday.
The benchmark contract on the European carbon markets was 0.26 euros higher, at 63.44 euro per metric tonne.
(source: Reuters)
