EUROPE GAS-European Gas prices are soaring as rising Norwegian supply offsets colder weather
Dutch and British gas traded within a narrow range Monday morning as temperatures below normal were offset by an increase in Norwegian production.
LSEG data shows that the benchmark Dutch front-month contract was 32.25 euros per Megawatt Hour (MWh) or $11.070/mmBtu at 0820 GMT. This is a decrease of 0.35 euros.
The Dutch day-ahead contracts was down 0.05 euro at 32.10 Euros/MWh.
The British gas front-month contract was down by 1.16 pence, at 80.45 p/therm. Meanwhile, the day-ahead price fell by 0.60 p/therm to 80.00.
As most field maintenances are now complete, the total Norwegian export nominated volume has increased by 11 million cubic metres per day (mcm/d) to 321 mcm/d. LSEG data shows that only Troll and Njord are affected at 7 mcm/d per field.
The temperatures in Northwest Europe will drop almost 3 degrees Celsius under normal during the next few days. They could even fall to 10 degrees Celsius on average later this week.
The day ahead is expected to see a slight decline in the local distribution zone demand (LDZ), which is residential heating demand. This will be by 24 gigawatt hours per day, to 1481 GWh/d.
Gas Infrastructure Europe's data shows that EU gas storage facilities are 82.32% full.
Energy Aspects analysts stated in a note published weekly that Europe is on track to meet its storage needs by the end of October.
The benchmark carbon contract in Europe was down 0.55 euro at 75.43 Euros per metric ton. Reporting by Marwa Rashed; Editing Harikrishnan Nair
(source: Reuters)
