Prices rise on increased demand for electricity and uncertainty about Russian flows
Dutch and British wholesale prices for gas rose on Friday, as a result of a surge in demand from power plants and a decrease in wind speed. There is also uncertainty over Russian gas supplies to Europe due to the imminent end of the Ukraine transit agreement.
The benchmark contract for the Dutch TTF hub rose by 0.30 euros to 43.58 euro per megawatt-hour (MWh), which is $13.68/mmBtu by 0955 GMT. Meanwhile, the contract for the next day was up 0.75 euros at 43.40 euro/MWh.
The day-ahead contract in Britain was 1.2 p higher, at 107.60 pence per therm.
LSEG analyst Timothy Crump stated that gas demand for electricity is up 10 million cubic metres per day (10mcm/day) and for heating it is flat.
On Thursday, Russian president Putin stated that it is now clear that there will be no new gas transportation agreement with Kyiv for Russian gas to reach Europe via Ukraine.
While the uncertainty around Russian flows remains, and any confirmed replacements for flows to Eastern Europe via plans such as Poland is developing in conjunction with Ukraine or Slovakia. Crump stated that there will be a risk premium until at least the end of this calendar year.
The lower house of the German parliament passed a bill on Friday that will eliminate a transit fee for gas that was driving up costs in other countries.
LSEG data show that the total Norwegian exports to Europe are at 253 mcm/d, and the total LNG sent to Northwest Europe at 1,860 GWh/d. The benchmark contract on the European carbon markets was up by 0.22 euros at 67.91 euro per metric ton.
(source: Reuters)
