EUROPE GAS - Prices rise due to colder weather and maintenance in Norway
Dutch and British wholesale prices of gas rose slightly Monday morning but continued to trade within a narrow range. This was due to a forecast for cooler weather and a lower Norwegian flow to continental Europe because of maintenance at the Kollsnes processing plant.
LSEG data shows that the benchmark Dutch front-month contract rose 0.26 euros to 35.40 Euro per megawatt hour or $11.50/mmBtu at 0848 GMT.
The British day-ahead contracts was up 4.55 pennies at 84.55 cents/therm.
LSEG data shows that the average temperature in North-West Europe is expected to increase by 1.5 degrees Celsius the next day, but then drop below the normal seasonal range on May 22.
LSEG data revealed that the demand for local distribution zones (LDZ), primarily used for heating purposes, was expected to fall by 24 gigawatt-hours per day (GWh/d), on the next day to 901 GWh/d.
Norwegian exports declined by 5 million cubic metres per day (mcm/d), to 302 mcm/d, and flows into the continent fell by 18 mcm/d, to 236 mcm/d.
According to LSEG, the decline was due to an earlier start of maintenance work at the Kollsnes Processing Plant. Further reductions are expected between May 21-22.
The Norwegian exports are down 18 mcm/d because of early maintenance at Kollsnes. LNG is also expected to be reduced by 150 GWh/d. This will tighten the supply. "The colder weather forecast for late May gives it a bullish tone," said LSEG Analyst Oleh Skrynyk.
Gas Infrastructure Europe's data shows that EU gas storage inventories have reached 44.47% capacity.
Markets are still closely following the news about Ukraine peace talks.
Donald Trump, the U.S. president, will speak with Russian President Vladimir Putin about peace in Ukraine on Monday. European leaders have demanded an immediate ceasefire from the Kremlin to end the deadliest conflict in the region since World War Two.
The benchmark contract on the European carbon markets was unchanged at 70.97 euro per metric ton. (Reporting and editing by Nina Chestney; Marwa Rashad)
(source: Reuters)
