Dutch and British wholesale gas prices rose slightly on Monday morning, but continued to trade in a narrow range, amid a cooler weather forecast and lower Norwegian flows to continental Europe due to maintenance at the Kollsnes gas processing plant.
The benchmark Dutch front-month contract (TRNLTTFMc1) was up 0.26 euro at 35.40 euros per megawatt hour (MWh) or $11.50/mmBtu, by 0848 GMT, LSEG data showed.
The British day-ahead contract (TRGBNBBD1) was up 4.55 pence at 84.55 pence/therm.
Avergae temperatures in north-west Europe are expected to rise by 1.5 degrees Celsius from the day ahead but drop below the seasonal norm from May 22, LSEG data showed.
Local distribution zone (LDZ) demand, mainly used for heating, is forecast to drop by 24 gigawatt hours per day (GWh/d) on the day ahead to 901 GWh/d, LSEG data showed.
Norwegian exports nominations fell by 5 million cubic meters per day (mcm/d) to 302 mcm/d and flows to the continent dropped by 18 mcm/d to 236 mcm/d.
The decline is due to an early start of maintenance at the Kollsnes processing plant and further reductions are expected on May 21–22, according to LSEG data.
“Norwegian exports to the Continent are down by 18 mcm/d due to early maintenance at Kollsnes and LNG send-out is expected to drop by 150 GWh/d, tightening supply. The colder weather outlook for late May adds a bullish undertone,” said LSEG analyst Oleh Skrynyk.
EU gas storage inventories are 44.47% full, according to Gas Infrastructure Europe data.
The market is still monitoring news on Ukraine peace talks.
U.S. President Donald Trump is set to speak to Russian President Vladimir Putin on Monday about peace in Ukraine as European leaders demanded that the Kremlin accept an immediate ceasefire to halt the region’s deadliest conflict since World War Two.
In the European carbon market, the benchmark contract (CFI2Zc1) was flat at 70.97 euros a metric ton.
Source: Reuters