Prices of EUROPE Gases rise slightly as trading is thin ahead of holidays

The Dutch and British wholesale prices of gas were slightly higher on Wednesday, in light trading ahead Christmas holidays throughout Europe. This is because there remains uncertainty over Russian gas supplies when the Ukraine Gas Transit Deal expires this year.

The benchmark contract for the Dutch TTF hub, the front-month contract, was up 0.25 euro at 46.00 euros per Megawatt Hour, or 14.36 mmBtu by 0947 GMT. Meanwhile, the day-ahead contracts was up 0.69 euro at 45.92 Euro/MWh.

The day-ahead contract in Britain was 2.15 pence more expensive at 114.50p per therm.

Data from the transmission system operator Eustream shows that on Tuesday, nominations for natural gas flowing into Slovakia from Ukraine were at the same levels as in recent days.

The number of nominations from Slovakia for the flow to Austria was slightly below that seen in previous days, but still in line with what we saw a month earlier. Meanwhile, the number of nominations from Slovakia to go to Czech Republic was in line with those from previous days.

Gazprom, the Russian gas company, said that it will send 42.4 million cubic meters of gas via Ukraine to Europe on Tuesday. This is up from 42.1mcm sent on Monday.

EU gas storage inventories are 75.65% full. This is a bit lower than the previous two years but still within the normal range.

Alex Froley is a senior LNG analyst with data intelligence firm ICIS. He noted that the winter gas market season runs from October through March.

"However if we enter next summer with slightly less stocks than in the past two years, it would require more injections next year."

Elexon data indicates that in Britain, peak wind production is expected to be 15.5 gigawatts (GW) on Tuesday and 12.8 GW by Wednesday.

The benchmark contract on the European carbon markets was up by 0.1 euros at 69.76 euro per metric ton.

(source: Reuters)