Gas prices in Europe fall as warmer temperatures are expected
LONDON, January 8 - Dutch wholesale gas prices and British wholesale gas rates fell on Thursday as temperatures are expected to warm up and reduce demand for 'gas for heating.
LSEG data shows that the benchmark Dutch 'front-month contract' at TTF hub fell 0.56 euros to 27.77 euros per Megawatt Hour (MWh), which is $9.50/mmBtu by 0921 GMT.
The Dutch March rate was lower by 0.86?euros, at 27.49 Euros/MWh.
The British day-ahead contracts lost 4.2 pence to 73.0p/therm.
In a daily forecast, LSEG'meteorologist Georg Muller stated that "next week we will begin to see a shift towards a more milder climatic pattern in the UK and southwestern Europe... temperatures near or above average are likely to prevail throughout the second half of January."
LSEG data shows that the local distribution zone gas demand for Northwest Europe (which is primarily a heating demand) is expected to decrease by 370 gigawatt-hours per day, to 5,112 GWh/d, in the days ahead.
Gas demand is also expected to be reduced by stronger wind speeds.
Engie EnergyScan analysts stated in a daily research report that "Gas consumption for electricity generation is expected to drop today and tomorrow due to higher wind generation."
Elexon data shows that peak wind power in Britain is expected to be 11.7 GW on Thursday, and 12 GW on Friday.
The benchmark contract on the European carbon markets was down by 0.62 euros, at 87.53 euro per metric ton.
(source: Reuters)
