EUROPE GAS prices in tight range due to strong LNG flow and warmer weather forecast
The Dutch and British wholesale prices of gas traded in a narrow band on Thursday morning. Market participants expect further declines due to forecasts of warmer weather and high flows of LNG.
LSEG data shows that the benchmark front-month contract for the Dutch TTF Hub was down 0.50 euro at 44.90 Euro per megawatt hour, or $13.80 /mmBtu by 0919 GMT.
The Dutch March contract is down by 0.54 Euros at 45.46 euro/MWh.
The month-ahead contract in Britain rose by 0.15 pence, to 113.5 p/therm.
The prices have fallen over the past week, after reaching a 14-month peak above 50 euros/MWh in early January.
The analysts of Engie's EnergyScan wrote in a daily report that "the rebound in Europe LNG exports appears to initiate a bearish sentiment, which offsets fears arose due to the suspension of Russian gas flowing through Ukraine."
LSEG data shows that temperatures across the continent will drop on Friday. However, forecasts for January 15 to 23 have been revised upwards, signaling warmer weather.
LSEG analyst Saku Jussla stated that heating demand is expected to increase by 362 gigawatt-hours per day, to 3024 GWh/d. Demand for the week ahead is also expected to be up 104 GWh/d to 3414 GWh/d.
The unplanned outage of Norway's Hammerfest Liquefied Natural Gas Plant has been extended to January 19
Gas Infrastructure Europe reported that Europe's gas storage facilities are 68.83% filled.
The benchmark contract on the European carbon markets was up 0.05 euros at 72.22 euro per metric ton.
(source: Reuters)
