Prices of EUROPE GAS rebound due to a weaker wind and colder weather
The wholesale gas prices in the Netherlands and Britain rebounded Tuesday morning after falling on Monday, due to expected colder weather conditions and reduced wind output.
The benchmark contract for the Dutch TTF hub at 0914 GMT was 0.67 euros higher, at 48.59 Euros per Megawatt Hour (MWh), while the contract for March was 1.52 Euros higher, at 48.45 EUR/MWh.
The contract in Britain for March was 0.57 cents higher, at 119.39 cents per therm.
Analysts at Engie EnergyScan said that temperatures are still higher than normal in many European countries, but are now dropping. This should lead to an increase in gas demand within Local Distribution Zones.
LDZ demand is the total amount consumed by consumers of gas connected to gas distribution systems, mainly to heat their homes and businesses and for industrial purposes.
Georg Muller, metereologist with LSEG, said: "Temperatures are expected to drop to normal levels by the weekend. Wind speeds will also be lower than they were in recent days."
A decrease in wind power output usually increases the demand for gas generated by power plants.
The pipeline gas supply from Norway as well as the liquefied gas export were stable.
Analysts at Engie EnergyScan said that Asia JKM prices remain well below European gas price, which should continue to keep Europe as a preferred destination for LNG Spot Cargoes.
According to a Monday statement from an EU diplomat, the European Commission will continue to hold talks with Ukraine about natural gas supplies into Europe. Hungary and Slovakia will also be included in these discussions.
Hungary has slowed down the renewal process of sanctions against Russia by the EU, which requires a unanimous vote. The deadline for the renewal of sanctions is January 31. Hungary has not decided yet whether it will proceed with the rollover as of Friday.
The benchmark contract on the European carbon markets fell by 0.24 euros to 79.12 euro per metric ton.
(source: Reuters)
