EUROPE GAS-European gas prices rise due to a colder and less windy climate, LNG shortage
Gas prices in the Netherlands and Britain rose on Wednesday, supported by an improved weather forecast and an interruption at the Freeport Liquefied Natural Gas?plant. Storages are still 'below previous years' levels.
LSEG data shows that the benchmark Dutch front-month contract was 27.50 euros per Megawatt Hour (MWh) or $9.44/mmBtu at 0941 GMT. This is an increase of 0.60 Euro.
The February contract increased by 0.45 euros to 27.19 Euro/MWh.
The British day-ahead gas prices increased by 1.40 pence to 70.50 pence a therm.
A trader stated that prices were likely to be reacting to a combination of colder forecasts for late January, less winds in December, and an outage at Freeport LNG, as well as the risk associated with low levels of gas storage.
He added that weather conditions should increase gas demand, both for heating and power.
The LSEG's Georg Mueller, a meteorologist, said that weather forecasts confirmed the fact that temperatures will be below normal during the last 10 days of December.
According to filings with the Texas Department of Regulation, one of three liquefaction train at Freeport LNG exported plant shut down on Tuesday.
Analysts at Engie EnergyScan wrote in a report that if the outage continued, it would have a significant impact on U.S. gas exports and on prices of gas in Europe and Asia.
Gas Infrastructure Europe's data shows that EU gas storage facilities were 69.29% filled at the end of last year compared to 77.91% last year.
Data from infrastructure operator Gassco shows that Norwegian pipeline gas exports to Europe have reached their highest level since August 2024.
The benchmark carbon contract in Europe was up 0.56 euros at 87.92 euro per metric ton. This is its highest level since 2023. (Reporting and editing by Harikrishnan Nair; Reporting by Nora Buli)
(source: Reuters)
