EUROPE GAS-European Prices Rise on Slightly Stronger Demand Outlook
Dutch and British gas rates firmed up on Tuesday. Forecasts suggest a slightly higher demand, although both pipeline?and liquefied (LNG?) supply remain robust.
LSEG data revealed that the benchmark Dutch front-month MWh contract at TTF hub had increased by 0.16?euros to 27.33 euros (MWh) or $9.33/mmBtu as of 0913 GMT.
It fell to its lowest level in April 2024, 26.75 Euros/MWh on Monday.
The Dutch day-ahead contracts eased by 0.03 euros, to 26.77 Euros/MWh.
The British day-ahead gasoline price increased by 1.85 pence to 68.60 cents.
Saku Jussila, LSEG analyst, said that the demand for electricity will increase in the next few days due to a gradual drop in wind energy generation and a colder climate, albeit above 'the seasonal norm.
Data from Elexon showed that the peak wind power generation will drop from 21,413 Megawatts (MW), on Tuesday, to 20,863 on Wednesday. On Friday, output reached a record-breaking 23,825MW.
The Golden Pass LNG Export Plant in Texas, United States received a cooling cargo. This is a significant step toward its opening.
In a recent note, analysts at ING stated that "the start-up capacity of LNG exports, especially from the U.S. will make global LNG markets as well as the European gas markets increasingly comfortable."
The report added that the increase in US LNG exports could make the US gas market more restrictive.
U.S. Natural Gas Futures, which reached their highest level in almost three years on Friday, dropped about 7% on Sunday, increasing the?discount to the TTF which had been narrowing in recent weeks. This raised some concerns regarding future?exports.
Gas Infrastructure Europe's data shows that EU gas storage sites are currently 72.31% full.
The benchmark contract on the European carbon markets was up 0.45 euros at 82.43 euro per metric ton. Nora Buli, reporting from Oslo; Alexander Smith, editing)
(source: Reuters)
