EUROPE GAS - Prices rise due to colder weather forecast and transit concerns in Ukraine
Dutch and British wholesale prices for gas rose on Friday, boosted by cold weather forecasts in January and the fading hope of a new agreement to transit Russian gas via Ukraine.
By 0914 GMT, the benchmark front-month contract for the Dutch TTF hub had increased by 1.27 euros to 46.80 euros/megawatt hour or $14.36/mmBtu.
The contract for February was increased by 1,211 euros to 46,96 euros/MWh.
The front-month contract in Britain increased by 2.44 pence to 118.20 cents per therm.
The trend towards a cold, but only moderately unsettling situation during the first 10 Days of January is a certainty. All forecasts show a rising pressure in the north Atlantic.
Gas demand increases during cold weather.
A current transit agreement for Russian gas via Ukraine that supplies several European nations is due to expire by the end of this year.
On Thursday, Russian President Vladimir Putin stated that there is no more time to sign another deal this year.
Gazprom, a Russian gas supplier, said that it will send 41.5 million cubic meters (mcm), up from 41.4 on Thursday.
Data from the transmission system operator Eustream shows that nominations for natural gas flowing into Slovakia from Ukraine were at the same levels as in recent days.
The data also showed that the nominations for flows to Austria and the Czech Republic from Slovakia were in line with the previous day.
Europe should import more LNG to compensate for the loss of Russian gas piped through Europe.
Venture Global, a U.S.-based LNG company, announced on Thursday that the first cargo of its newly opened Plaquemines Export Plant in Louisiana was headed to Germany.
Gas Infrastructure Europe's data shows that EU gas storage inventories are 74.74% full. This is around 10 points lower than their previous levels for the same time period in the last two years. However, they remain within a range of normality.
The benchmark contract on the European carbon markets was up by 0.92 euros at 70.39 euro per metric ton.
(source: Reuters)
