Prices of EUROPE GAS rise on demand and tight supply
The Dutch and British wholesale prices of gas extended their previous session's gains Tuesday. This was due to the rising demand for gas from cooler weather, the ongoing Norwegian supply restrictions, and fears that a hurricane could impact the U.S. liquefied gas supply.
LSEG data shows that the benchmark front-month contract for the Dutch TTF hub rose by 0.60 euro to 37.75 euros per Megawatt Hour, or 12.19/mmBtu by 0802 GMT.
On the British market, the day-ahead contracts gained 1,50 pence each to 90.50 cents per therm.
Analysts at Northern Gas and Power stated in their morning briefing that "Gas demand and power generation are expected to be higher tomorrow, as temperatures remain below normal seasonal levels."
LSEG data revealed that temperatures in Britain were already below average and will continue to be below average in North-West Europe starting Wednesday.
Elexon data shows that the peak wind generation in Britain will drop from 18,2 gigawatts (GW) on Tuesday to 15,1 GW on Wednesday.
LSEG data show that maintenance at Norwegian infrastructure is continuing to severely curb the supply. Gas exports to Britain and continental Europe were flat at 190 millions cubic metres Tuesday morning.
This is compared to pre-maintenance nomenclatures of approximately 340 mcm/day.
On Wednesday, the U.S. forecast predicts that tropical storm Francine will become a hurricane of category 1, before it reaches the Louisiana coast. This is home to several LNG facilities.
In a recent report, LSEG analyst Yuriy Onieshkiv stated that "the upcoming risk of a storm in the U.S. has already affected operations at offshore oil and natural gas facilities in the U.S. Gulf. This is likely to continue supporting the prices in Europe."
He added that the feedgas at Louisiana's Cameron LNG facility has dropped by 260 gigawatt-hours per day, to 374 GWh/d today compared to yesterday.
Gazprom, the Russian gas producer, said that it will send 42.2 million cubic meters of gas via Ukraine to Europe on Tuesday. This is up from 41.9 million cubic metres on Monday.
The benchmark contract on the European carbon markets rose 0.58 euros, to 67.10 euro per metric ton.
(source: Reuters)
