EUROPE GAS-Prices fall as Norwegian supply ramps up

Credit: REUTERS/Wolfgang Rattay

LONDON, July 17 (Reuters) - Dutch and British wholesale gas prices fell on Monday morning as strong supply following an end to maintenance at major Norwegian infrastructure dampened prices.

The benchmark front-month Dutch contract TRNLTTFMc1 was down 2 euros at 24.90 euros per megawatt hour (MWh) by 0829 GMT, according to Refinitiv Eikon data.

The Dutch day-ahead contract TRNLTTFD1 fell by 1.45 euros to 24.25 euros/MWh.

The British within-day contract TRGBNBPWKD fell by 4 pence to 58.50 p/therm.

An end to maintenance at the Norwegian Nyhamna gas processing plant helped to boost supply and push prices lower, analysts said.

“The return from planned maintenance of Nyhamna was delayed last month due to ongoing issues and created short term panic in the market, with intraday spikes,” consultancy Auxilione said in a daily market note.

“The market has since returned to ‘pre panic’ levels and appears to want to drive lower still,” Auxilione said.

Total Norwegian exports were up 60 million cubic metres a day (mcm/d) at 318 mcm/d, Refinitiv Eikon data showed.

Britain’s gas market was oversupplied on Monday with demand forecast at 159.3 million cubic metres (mcm) and supply forecast at 174.5 mcm, National Gas company data showed.

Flows of Russian gas to Europe via Ukraine remained stable.

Russia's Gazprom GAZP.MM said it would send 39.9 million cubic metres (mcm) of gas to Europe via Ukraine on Monday, compared with 39.6 mcm the previous day.

“Today the fundamentals remain soft. Total (European) demand is set to increase ever so slightly this week however, the very comfortable supply situation should dampen the influence of that,” Refinitiv analyst Ulrich Weber said in a morning research note.

In the European carbon market, the benchmark contract CFI2Zc1 edged up by 0.29 euro to 86. 32 euros a tonne.

Russian gas volumes to Europe

(Reporting By Susanna Twidale Editing by Bernadette Baum)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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