Prices of EUROPE GAS are rising amid higher demand and lower Norway exports.
Dutch and British wholesale prices of gas rose on Tuesday morning due to lower Norwegian exports into Europe and increased demand. The benchmark front-month contracts at the Dutch TTF Hub were up 0.64 euros at 41.68 Euro per Megawatt Hour (MWh) at 0932 GMT, LSEG Data showed.
The contract for the month of May increased by 1,15 euros to 41,66 euros/MWh.
The British front-month contracts was 1.27 pence more expensive at 102.07 cents per therm.
The maintenance work on the Asgard field, which is expected to finish tomorrow, has caused a drop of 5 million cubic meters (mcm), or 321 mcm/day.
The drop in temperatures is expected to increase the demand for heat in North-West Europe's local distribution zone (LDZ), which will be 262 gigawatt-hours per day (GWh/d). This is expected to reach 3,327 GWh/d.
Saku Jussila is a gas analyst with LSEG. He said, "We believe that today's market will be driven by the fundamentals of the day (higher Norwegian maintenance and higher demand). Prices should adjust slightly higher to the moving averages for the next 20 and 50 days."
The total North-West Europe LNG send-out remains flat at 2,517GWh/d. The LNG nominations from the Gate terminal and Eemshaven are 130 GWh/d each and 0 GWh/d respectively.
Jussila said, "We think this is just a data blip. Both terminals should continue sending at normal levels."
Robert Fico, the Slovak prime minister, said that the European Commission was in discussions about restarting transit through Ukraine.
Analysts at Engie EnergyScan said that, given the uncertainty around a possible return of transit through Ukraine, it would be prudent to not let too many LNG cargoes depart for Asia.
The benchmark contract on the European carbon markets fell by 0.23 euros to 68.78 euro per metric tonne. Nina Chestney reports.
(source: Reuters)
