Prices of EUROPE Gas are down due to strong LNG supply and rising demand
The Dutch and British wholesale prices of gas fell on Friday morning, as a strong supply of liquefied gas offset an increase in heating demand.
LSEG data shows that the benchmark Dutch front-month contract was lower by 0.44 euros at 31.95 Euro per megawatt hour or $10.84/mmBtu at 0915 GMT.
The Dutch day-ahead contracts was down by 0.67 euros at 32.13 Euro/MWh.
The British gas day-ahead price fell by 0.40 pence to 82.10 pence a therm.
LSEG analyst Oleh Skrynyk said that the Northwest Europe LNG exports are up +92 gigawatt hours per day, to 2,322?GWh/d. This is mainly due to higher French nominations.
The heating demand has increased by +144?GWh/d, to 1,490?GWh/d. He added that the gas for power demand has also increased by 364?GWh/d, to 2,775?GWh/d due to cooler weather and weaker winds.
Norwegian exports are steady at 312,? LSEG data shows that the Troll field outage and upcoming reductions add a small risk premium.
Skrynyk stated that the market was expected to trade in a range with a slight upward bias. This is supported by softer winds and demand gains, but higher LNG prices and fewer Italian pulls will cap any upside.
Due to lower than expected demand, traders said Egypt would delay between 15 and 20 LNG cargo deliveries in Q4 of 2025 until next year.
According to analysts at Engie’s EnergyScan, this has pushed down gas prices in Europe.
Gas Infrastructure Europe has released the latest figures showing that Europe's storage sites for gas are 82,82% full.
The benchmark contract on the European carbon markets was up 0.30 euros at 79.53 euro per metric ton.
(source: Reuters)