EUROPE GAS-Prices maintain firmer levels as market eyes Norway supply
The Dutch and British wholesale prices of gas on Friday morning remained at levels similar to those reached the previous session. This is due to the upcoming heavy maintenance work in Norway, and the need for gas storage before winter.
LSEG data shows that the benchmark Dutch front-month contract was up 0.34 euros at 33.54 euro per megawatt hour or $1.40 per mmBtu at 0820 GMT.
The British front-month price rose 0.74 pence to 83.35 cents per therm. Meanwhile, the day-ahead price increased 0.05 pence to 82.75 cents per therm.
Wayne Bryan, principal of gas research at LSEG, said in a note published every week that prices should stabilize and possibly rise slightly before the start of Norwegian infrastructure maintenance next Monday.
LSEG expects prices to be between 33-34 euros/MWh next week for TTF, and between 80-82 p/th (per kWh) for NBP.
Bryan stated that the main risk for this outlook is any unexpected extension or outage beyond the current schedule of maintenance.
Data from infrastructure operator Gassco revealed that the number of nominations for Norwegian gas flowing to Europe has dropped from 316 to 308 million cubic metres/day.
According to data, planned maintenance at several fields and plants is expected to reduce Norwegian flows by approximately 110 mcm/day during much of September.
Gas Infrastructure Europe's data shows that EU gas storage sites are currently 74.8% filled.
Analysts at ING stated in a morning report that this level is below the average for the past five years of 82%, and also behind last year's 91%.
The European price will need to be competitive with Asia in order to ensure that enough LNG is sent to Europe before the next heating season. However, deliveries have declined since June's peak.
The benchmark contract on the European carbon markets was up by 0.13 euros at 72.75 euro per metric ton. Nora Buli, reporting from Oslo; Sonia Cheema, editing.
(source: Reuters)
