The price of gas in Europe is rising as a result of a lower Norwegian supply and milder temperatures
The wholesale gas price in the Netherlands and Britain rose on Wednesday morning, as a lower supply of gas from Norway was due to maintenance. This was offset by a weaker demand because of milder weather.
LSEG data shows that the benchmark Dutch front-month contract was up 0.23 euro at 31,73 euros per megawatt (MWh) at $10.80/mmBtu at 0924 GMT.
The Dutch December contract increased by 0.29 Euros to 31.99 Euros/MWh.
The British gas front-month price increased by 0.59 pence to 80.22 p/per thermo.
LSEG data shows that maintenance on the Norwegian gas infrastructure has reduced total export nomina- tions, which now stand at 287 mcm/day, compared to 326 mcm/d Monday.
In a daily research report, LSEG analyst Wayne Bryan stated that "any extension to this schedule of maintenance would present a bearish risk."
LSEG data shows that the local distribution zone demand, which includes heating demand, will be 54 gigawatts/day lower on the day to come.
In a daily note, Engie EnergyScan analysts said that forecasts show a high likelihood of temperatures above normal next week.
The European Union announced on Tuesday that it would begin pooling the demand of European companies for gas in the next few weeks as the bloc attempts speed up its efforts towards phasing out Russian energy.
The benchmark contract on the European carbon markets was up 0.36 euro at 78.65 Euros per metric ton.
(source: Reuters)
