The price of gas in Europe is rising due to a decline in wind power production
Dutch and British wholesale prices for gas edged up on Friday as forecasts of lower wind output boosted demand for 'gas from power plants. But solid supply capped the gains.
LSEG data shows that the benchmark Dutch front-month contract was up 0.70 Euros at 28.05 euros per Megawatt Hour (MWh) or 9.63/mmBtu at 0918 GMT.
The Dutch February electricity price increased by 0.38 euros to 27.43 euros/MWh.
The British day-ahead contracts was up 1.85 pence to 72.75 p/therm.
LSEG data showed that the demand for non-local distribution zones in Northwest Europe (which includes power plants) is expected to increase by 133 gigawatt-hours/day compared to yesterday, due a drop in wind 'power output.
Elexon data shows that the peak wind power output in Britain is expected to be 13.4 gigawatts (GW) on Saturday, down from 20 GW Friday.
Wayne Bryan, Director of European Gas Research for LSEG said: "Any further bullish intention was tempered by the strong fundamentals of supply and the expectation that increased LNG 'imports' could offset any surge of demand."
LSEG data revealed that the supply was stable, with Norwegian exports nominated at 348mcm/d. This is a range they have been in since December 11.
Gas Infrastructure Europe has revealed that Europe's storage sites are 68.2% filled.
Analysts at Engie EnergyScan stated that "Overall European net storage withdrawals fell strongly yesterday. They are expected to increase modestly today."
The benchmark contract on the European carbon markets was 0.27 euro higher, at 86.76 Euros per metric ton.
(source: Reuters)
