Prices for EUROPE Gas are down due to strong LNG flows and rising demand
The wholesale gas prices in the UK and Netherlands were lower on Wednesday morning, as steady LNG flows offset an increase in heating demand caused by a drop in temperature.
LSEG data shows that the benchmark Dutch front-month contract was down 0.47 euros at 31.88 Euro per Megawatt Hour (MWh), which is $10.73/mmBtu by 1024 GMT.
The British front-month contracts fell 1.17 pence to 83.65p/therm.
LSEG data shows that the drop in temperatures will cause a 171 GWh/d increase in local distribution zone demand (which is domestic heating demand) on the next day.
According to LSEG, gas for power demand will also increase by 334 GWh/d to 2729 GWh/d in the coming day, as wind output plummets towards a wind lull over the weekend and next week.
The wind lull is unusual, as German wind power output drops to 1-2 GW levels on Saturday and Sunday compared to a usual level of 21 GW, said LSEG analyst Saku Jusli.
Elexon data shows that the peak British wind power generation on Wednesday is expected to be 13.08 gigawatts, and will drop to 11.00 GW on Thursday.
Elexon data shows that EU gas storage inventories were 83.02% filled, down from 95.20 % last year.
The benchmark contract on the European carbon markets was up by 0.60 euros at 81.81 euro per metric ton. (Reporting and editing by Joe Bavier; Marwa Rashad)
(source: Reuters)