EUROPE GAS-Prices rise as weaker renewable power output drives demand
The Dutch and British wholesale gas price rose on Wednesday morning, as the demand for gas increased due to forecasts of lower production from solar and wind power plants.
LSEG data shows that the benchmark Dutch front-month contract was up 0.55 euros at 33.56 Euro per megawatt hour or $11.55/mmBtu at 0813 GMT.
The Dutch day-ahead contracts was up 0.22 euros at 32.80 Euro/MWh
The British day-ahead contracts rose 0.85 pence, to 81.60 p/therm.
LSEG data show that the demand for non-local distribution zones of gas, which reflects large gas consumers such as gas-fired power plants, will increase by 121 gigawatt-hours a day (GWh/d), to 1,849 GW/h on Thursday.
Dzmitry Dzmitry Dauhalevich, LSEG analyst, said: "This is due to wind speeds that are expected tomorrow to drop by almost 80% and remain below seasonal norms until mid-next weeks."
In Europe, solar power production is also expected be low.
In a daily report, Engie EnergyScan analysts said that solar power was low due to cloud cover this week. They predicted that it would be the same next week with some improvement possible despite clearer weather.
Elexon data revealed that the peak wind output in Britain was expected to be 4.8 gigawatts on Wednesday, and 6.3 GW for Thursday.
National Gas data revealed that the gas system in Britain was slightly undersupplied on Tuesday, with demand estimated at 157.83 mcm and supply at 135 mcm.
The benchmark contract on the European carbon markets was up by 0.69 euros at 69.81 euro per metric ton.
(source: Reuters)
