Prices for gas in Europe are falling due to higher renewables and strong LNG
The wholesale gas prices in the Netherlands and Britain fell on Tuesday morning due to a robust supply of liquefied?gas and increased renewables generation.
By 0916 GMT, the Dutch front-month contract had fallen by 0.54 euros to 31.25 euros per megawatt. According to LSEG, the contract for April decreased by 0.32 euros to 30.93 euro/MWh.
The day-ahead prices in the British market fell from 75 pence per therm to?1.65 pennies.
LSEG data shows that wind and solar power generation are expected to increase in North-West Europe through the weekend. This will cause a fall in demand for gas produced by power plants.
The UK wind generation is also expected to be above normal until March 2.
The LNG export is strong, at over 2,500 gigawatt-hours per day (GWh/d), and cargo arrivals are busy.
Wayne Bryan, LSEG's head of European Gas Research, said that there is a high arrival schedule in north-west Europe through March. Our 14 day forward forecast is?at 2.729 GWh/d.
Norwegian exports were impacted by several outages, but volume is expected to recover?by March's start.
Analysts at Engie EnergyScan said that both TTF month-ahead prices and Cal 2027 remain below their 1-year average. This maintains a 'bearish'?momentum.
The market is "hesitant" to go into a "decisive downtrend", they said, citing geopolitical risk and the low European gas stock levels.
The benchmark contract on the European carbon markets fell by 0.31 euros to 71.07 euro per metric ton. Nina Chestney reports.
(source: Reuters)
