EUROPE GAS - European gas prices remain stable despite signs of tanker movements in the Strait of Hormuz
The Dutch and British gas prices were stable on Wednesday morning, as more tankers began to pass through the Strait of Hormuz. This led to renewed hopes of LNG exports.
ICE data showed that the benchmark Dutch front-month contract was EUR0.254 lower at EUR41.76 per Megawatt Hour (MWh), or $13.90/mmBtu by 0810 GMT.
The British June contract fell 0.52 pence to 99.77 pence a therm.
In a daily report, analysts at Mind Energy stated that "LNG ships have begun passing through the Strait of Hormuz once again. Even though it will be several weeks before they reach their destination, the gas markets?are obviously relieved." The Strait of Hormuz was reopened to shipping on Tuesday. Three supertankers carrying oil and seven liquefied gas tankers linked to Qatar entered the Strait in recent weeks. This is an indication that Gulf gas shipping could be returning, according to a ship-tracking report.
As Europe was gripped by high temperatures and low wind speeds, the hope of new LNG supplies offset the strong gas demand in the power sector. The National Energy System Operator of Britain issued an 'electricity margin' notice for Wednesday night, asking generators for more power in the face of high temperatures and low?wind?power output.
Elexon data shows that the peak wind power generation is expected to be 6.2 GW in Britain on Wednesday and 14 GW by Thursday. Some nuclear power plants in France have had to reduce production due to high river temperatures. These rivers are used to cool these plants.
The benchmark contract on the European carbon markets rose EUR0.66 per metric ton to EUR81.37. (Reporting and editing by Rashmi aich; Susanna Twidale)
(source: Reuters)
