The price of gas in Europe is rising on the back of hurricane fears
The wholesale gas prices of the Netherlands and Britain increased on Wednesday morning, as the storm in the United States intensified into a hurricane. This posed a threat to the liquefied gas (LNG), export operations in southern Europe.
LSEG data shows that the benchmark front-month contract for the Dutch TTF hub at 0814 GMT was 0.13 euro higher, at 35.65 Euro per megawatt hour.
The day-ahead contract in the British market was 1.25 pence more expensive at 86.50 cents per therm.
Gas traders said that although prices aren't much higher, there could be some disruption in LNG supply due to the hurricane that may have damaged plants in the United States.
Storm Francine, in the United States, grew into a Hurricane on Tuesday night.
The storm is expected to land on Louisiana's Thibodaux near the end of Wednesday. The path of the storm will be a major test to LNG export plants that were recently constructed in the area.
On Wednesday, oil prices rose slightly due to concerns over the impact of Hurricane Harvey.
Ukraine's Energy Ministry said that Russian forces had attacked energy infrastructure across four regions over the last 24 hours.
The warmer weather forecasts for next week should reduce demand. However, the supply of Nowegian natural gas pipelines and liquefied gas is stable.
Today, the total Norwegian export nominated volume is 1 million cubic meters (mcm). Continental flows are unchanged at 177mcm/d. LSEG data shows that the Baltic Pipe, Dornum and Langeled pipes are currently fully closed.
The benchmark contract on the European carbon markets was 0.38 euros higher, at 65.30 Euros per metric ton.
(source: Reuters)
