British and Dutch gas prices were mixed on Tuesday morning as the British market played catch up on news over possible industrial action at two Chevron Australian liquefied natural gas (LNG) facilities.

The Dutch September contract was 1.58 euros lower at 36.58 euros per megawatt hour (MWh) by 0839 GMT, while the day-ahead contract rose by 1.20 euros to 37.30 euros/MWh, according to Refinitiv Eikon data.

In Britain, where markets were closed on Monday due to a holiday the day-ahead price rose by 4 pence to 93 pence per therm. The September contract was up 8.15 p at 93 p/therm.

“European markets were open for trading yesterday and have reflected on the (Australian) news, whilst UK markets were closed and are likely to adjust today to catch up,” consultancy Auxilione said in a daily research note.

Dutch prices rose around 8% over the day on Monday. Chevron’s two major LNG production facilities in Australia could face daily work stoppages of up to 10 hours next week after unions on Tuesday threatened industrial action in a dispute over pay and conditions.

Analysts at Refinitiv said prices are likely to remain volatile while the situation is unresolved.

“The uncertainty and volatility emanating from such a situation is likely to remain for some time, supporting global gas prices as the market enters the shoulder month ahead of the winter season,” Refinitiv analyst Yuriy Onyshkiv said in a daily research note.

High gas storage levels, however, continue to provide a buffer from extreme price spikes.

Europe’s gas stores are 92.5% full, latest data from Gas Infrastructure Europe showed.

In the European carbon market, the benchmark contract rose by 0.26 euro to 85.94 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Susan Fenton)