EUROPE GAS - Prices rise after Ukraine attacks on gas infrastructure and colder forecasts
Dutch and British gas rates rose on Monday morning, as colder weather forecasts increased demand for heating. Worries over Russian attacks against Ukrainian gas production may also have contributed to the increase.
LSEG data shows that the benchmark Dutch front-month contract was 32.70 euros per Megawatt Hour (MWh) or $11.19/mmBtu at 0935 GMT. This is an increase of 1.32 euros.
The Dutch day-ahead contracts was up 1,74 euros to 32,74 euros/MWh.
The British day-ahead contracts rose by 10.34 pence, to 81.00 cents per therm.
In a morning report, Karsten Sander-Nielsen, senior analyst at Mind Energy, said that the market opened with noticeable gains Monday morning, following the recent Russian attacks on the Ukrainian gas pipeline infrastructure. Bullish weather forecasts also added to the positive outlook.
According to the state-owned gas and oil company Naftogaz, Russia launched the largest attack since the beginning of the conflict on the Ukrainian gas infrastructure on Friday. It continued its strikes over the weekend on the civilian gas supply infrastructure.
Similar attacks in February resulted in a 40% decrease in the domestic gas production of Ukraine, and an increase in natural gas imports via Europe.
LSEG data revealed that nominations for gas flow to Ukraine from entry point in Hungary, Slovakia, and Poland were largely unchanged on Monday.
Wayne Bryan, LSEG’s principal of gas research, said that the colder weather forecasts are causing a rise in gas demand for heating.
He added that the switch of BBL interconnector to exports to Belgium from Britain was another factor supporting British prices.
Gas Infrastructure Europe's data shows that EU gas storage facilities were last 82.75% filled, compared to 94.32% last year at the same point.
The benchmark carbon contract in Europe was up by 0.18 euros at 79.34 euro per metric ton. (Reporting and editing by Susanna Twdale in Oslo)
(source: Reuters)
