EUROPE GAS-Prices soar as gas supplies from Russia fall

Credit: REUTERS/WOLFGANG RATTAY

LONDON, Nov 1 (Reuters) - British and European wholesale gas prices soared on Monday morning, as a reversal of flows through an entry point for the Russian Yamal gas pipeline showed gas being sent in the other direction.

The day-ahead British gas price TRGBNBPD1 was up 37 pence at 1.76 pounds per therm by 10.13 GMT.

The Dutch day-ahead gas TRNLTTFD1 contract was up 11.45 euros at 71.85 euros per megawatt hour (MWh).

Nominations of gas flows at Mallnow on the Polish-German border point for the Yamal pipeline from Russia into Germany – which usually sends Russian gas to Europe – was instead sending flows eastwards on Monday.

Pipeline operating company Gascade said the reversal of flows was expected to continue until Nov. 2 and said it was not unusual for shippers to use the eastwards direction.

However, traders and analysts said the change in flow direction had taken the market by surprise.

"The drop in Mallnow flows is unexpected, the entry capacity into Mallnow was booked at 324 GWh/d (gigawatt hours/day) for November in line with October, so the market expectation was rather to see flows close to October level," analysts at Refinitiv said in a daily research note.

Traders also said gas prices were correcting after steep falls last week following comments from Russia's Putin that Gazprom could start pumping gas into European storage soon.

The Dutch December gas price TRNLTTFMc1 was up 7.8 euros at 72.65 euros per megawatt hour (MWh).

The British December gas price TRGBNBPMZ1 was up 20.5 pence to 1.88 pounds/therm.

The benchmark Dec-21 EU carbon contract CFI2Zc1 was up 1.24 euros at 59.95 euros a tonne.

(Reporting by Susanna Twidale; Editing by Shailesh Kuber)

((susanna.twidale@thomsonreuters.com; +44 207 5424753;))

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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