Prices for Europe GAS remain stable with focus on Norway storage and supply

The wholesale gas prices in the Netherlands and Britain were not much different on Friday morning, as maintenance work in Norway continues to limit supplies. Also, the need to replenish European storage sites is still a major factor.

LSEG data shows that the benchmark Dutch front-month contract for the TTF hub increased by 0.20 euro to 36.50 Euro per megawatt hour at 0840 GMT.

The British day-ahead contract increased by 1.50 pence, to 87.50 pence per therm.

LSEG data revealed that the latest weather forecast predicted a temperature increase in North-West Europe next week.

Ulrich Weber, LSEG analyst, says that Norwegian maintenance outages are likely to remain a major factor next week. However, if there is no extension, the prices will trade largely sideways.

LSEG data revealed that the total Norwegian export nominated increased by 16 million cubic metres per day (mcm/d), to 273 mcm/d, as two small fields were returned from maintenance.

Analysts said that the re-filling of storage is also a larger concern.

Gas Infrastructure Europe (GIE), based on its data, reported that European storage sites are currently 49.9% filled, a 20-point decline from the level of filling at the same point last year.

Greg Molnar said that if the injections continued at the same rate as the last three years they would only be 84% full at the beginning of November.

He added that this would be 13 billion cube metres (bcm), below the three-year average. Lower gas stocks may also support higher price volatility during winter.

The German utility Uniper announced this week that "persistently adverse market conditions" had prevented Breitbrunn's capacity sales from reaching the mandated 80% level of filling by November 1.

The benchmark carbon contract in Europe increased by 0.28 euros to 73.02 euro per metric ton. Nora Buli, reporting from Oslo; Nina Chestney, editing)

(source: Reuters)