The cold weather forecast is driving up gas prices in the Netherlands and Britain
The wholesale prices of Dutch and British gas rose on Wednesday morning as the colder weather forecast increased demand.
LSEG data revealed that the benchmark Dutch front-month contract for the TTF hub had increased by 0.34 euros to 31.50 Euros per Megawatt Hour (MWh), or $10.67 /mmBtu at 0913 GMT.
The Dutch day-ahead rate was 30.75 euros/MWh, up 0.55 Euro.
The British day-ahead contracts was up by 4.9 pence to 68 p/therm.
Ulrich Weber, LSEG's analyst, said that the temperature forecast for next week is 0.7 degrees Celsius colder than it was this morning. The temperatures are expected to be well below normal.
LSEG predicted that local distribution zone demand, which includes heating for homes, will increase by 190 gigawatt-hours/day in the next week.
LSEG data indicated that the supply was very strong with a liquefied gas export to Northwest Europe of 2,611 gigawatt-hours/day.
Indonesia faces a shortage of around 20 LNG cargoes this year, due to a higher domestic demand than expected, which has led the country to try to delay some of their export obligations, said its energy minister on Tuesday.
Bloomberg reported Tuesday that Egypt also wants to import more cargoes.
These elements remind us that even though the global LNG markets seems to be comfortable for the moment, they still have some risk factors," Engie EnergyScan analysts said in a recent research note.
The benchmark contract on the European carbon markets was 1.32 euros higher at 81.97 euro per metric ton. (Reporting By Susanna Twidale. (Editing by Jane Merriman.
(source: Reuters)
