Prices for European gas rise as renewed Russian focus on gas is renewed

The Dutch and British wholesale gas price rose on Tuesday afternoon due to renewed concerns about Russian gas supplies to Europe starting in January.

By 1505 GMT the benchmark front-month contract for the Dutch TTF hub had risen 1.87 euros to 41.83 euros/MWh, or $12.87/mmbtu. This was a continuation of the gains made in the morning.

It fell to 39.10 euros/MWh intraday on Monday, its lowest since November 6.

The front-month contract in Britain firmed up by 3.85 pence, to 104 pence/therm. Meanwhile, the day-ahead contract increased 3.75 pence, to 100.8 pence/therm.

Traders said that the European Commission's repeated comment, "We have no interest in continuing Russian gas transit through Ukraine", was the reason for the wider gains of the afternoon.

Gas buyers from Slovakia Hungary Austria and Italy signed the current transit agreement, which ends at the end this year.

a declaration

Support for the continuation of natural gas transit through Ukraine

The Economy Ministry said that Slovakia has also had more discussions with Russia's Gazprom to ensure the country continues gas supplies.

Denys Shmyhal, the Ukrainian Prime Minister, said that his country would be willing to negotiate a deal to allow non-Russian natural gas to pass through its territory and reach western Europe. However he ruled out extending an existing agreement with Russia.

Gazprom, the Russian gas producer, said that it will send 42.4 million cubic meters (mcm), up from 42 mcm sent on Monday.

The benchmark contract on the European carbon markets was down by 0.77 euros at 64.50 euro per metric ton.

(source: Reuters)