Gas prices in Europe are falling as wind energy output increases
The Dutch and British wholesale prices of gas fell early on Friday due to the strong output from wind turbines, which reduced demand and stable supply.
LSEG data shows that the benchmark Dutch front-month contract was 32.05 euros per Megawatt Hour (MWh), or $10.99/mmBtu at 0825 GMT. This is a decrease of 0.33 Euro.
The Dutch day-ahead contracts was down by 0.16 euros at 32.37 Euro/MWh.
The British gas day-ahead price fell by 0.81 pence to 80.50 p/per thermo.
In a daily note, LSEG analyst Yuriy Onieshkiv stated that "Weakened gas-fired electricity demand due to increased wind generation may weigh on spot price, especially since the remainder of the supply-demand equilibrium remains largely unchanged."
LSEG data revealed that the demand for non-local distribution zones in Northwest Europe (which includes power plants) was expected to be 517 gigawatts/day higher, at 2,218 GWh/day, on the day ahead.
LSEG data revealed that the total Norwegian export nominated volumes were 16 million cubic meters/day higher, at 305 mcm/d.
Gas prices are also expected to fall due to the solid supply situation.
In a daily report, analysts from Engie EnergyScan stated that "Overall European net storage withdrawals were weaker yesterday and are expected to fall again today."
Gas Infrastructure Europe has released the latest figures showing that Europe's storage sites for gas are nearly 83% full.
The European Parliament’s energy committee supported proposals on Thursday to accelerate the EU’s phase-out from Russian gas by an additional year, to January 1, 2026. Limited exceptions will be allowed up until 2027.
The benchmark carbon contract in Europe was down by 1.15 euros at 78.36 euro per metric ton. (Reporting by Susanna Twidale, Editing by Kate Mayberry).
(source: Reuters)
