Dutch and British wholesale gas prices were largely steady on Monday morning due to healthy supply, solar power output and muted demand.

The benchmark front-month contract at the Dutch TTF hub was flat at 33.95 euros per megawatt hour, or $10.60 per mmBtu, by 0845 GMT, LSEG data showed.

The September contract was down 0.17 euro at 35.28 euros/MWh.

In the British market, the front-month contract eased by 0.40 pence at 78.80 pence/therm.

While wind power generation is forecast to be weak, it is expected to strengthen again by the end of the week, potentially increasing gas-for-power demand.

Hotter weather across north-west Europe could increase demand for cooling but solar power capacity is high which could help to balance demand.

On the supply side, Norwegian imports are expected to increase by 8 million cubic metres per day due to the completion of Gina Krog maintenance.

On Sunday, Equinor said its Hammerfest LNG plant has suffered an unexpected outage, which has has the capacity to deliver about 6.5 billion cubic metres of gas per year, but it is expected to come back online this evening.

“This probably explains the lack of reaction in prices which continue to weaken slightly this morning,” said analysts at Engie EnergyScan.

In Australia, Chevron has resumed full LNG and domestic gas production rates at its Wheatstone gas facility which supplies some Asian markets but the resumption means those buyers will not create added competiton for LNG in the global market which Europe might want to buy.

In the European carbon market, the benchmark contract edged down by 0.58 euro to 67.55 euros per metric ton.
Source: Reuters (Reporting by Nina Chestney)