LONDON, Sept 29 — Dutch and British wholesale gas prices fell this morning after steep rises this week, amid higher wind output and robust liquefied natural gas tanker supply, though concerns remain about Europe’s remaining pipeline security.
In the Dutch market, the day-ahead price was €4.74 (RM21) lower at €194.80 per megawatt hour (MWh) by 0815 GMT, while the weekend price fell by €10.00 to €190.00/MWh.
The UK October contract was down 30.00 pence at 295.00 pence per therm, while the day-ahead price was 25.00 pence lower at 205.00 pence/therm.
Prices rose earlier this week after leaks were found on the Nord Stream pipeline system and Russia threatened sanctions against Ukraine’s Naftogaz if it continues with an arbitration claim.
Such sanctions would prohibit Gazprom from paying Ukraine transit fees, which analysts say could end Russian gas flows to Europe via the country.
Traders said there was likely some correction to recent price rises this morning and traditional market drivers pointed towards lower demand over the next few days.
But there are still concerns about the security of Europe’s pipeline supplies and a possible cap on prices to be discussed tomorrow at an EU energy ministers meeting, a gas trader added.
In Britain and north-west Europe, gas-for-power demand is forecast to drop over the next few days as wind output rises.
Typically, higher wind generation reduces demand for gas from power plants.
“Fundamentals are mixed for short-term prices today with an upward revision in temperature forecasts for early October combined with relatively wet and windy conditions likely to weigh on gas demand,” said analysts at Engie EnergyScan.
“The LNG delivery schedule remains particularly busy... but Norwegian gas production is not ramping up as fast as expected due to unplanned outages at Oseberg and Skarv,” they added.
Total Norwegian exports are down by 9 million cubic metres (mcm) at 282 mcm/day after an unplanned outage at the Oseberg field, Refinitiv Eikon data showed.
There are over 20 liquefied natural gas (LNG) tankers which are arriving at ports in Britain, the Netherlands and Belgium over the next month.
In the European carbon market, the benchmark contract was inched down by €0.82 to €64.33 a tonne. — Reuters
