British and Dutch gas prices were mostly lower on Thursday morning amid profit taking and stable Russian gas flows.

The British day-ahead gas price TRGBNBPD1 was 13.00 pence lower at 329 pence/therm by 1056 GMT, while the April contract TRGBNBPMJ2 edged down by 5.00 pence to 365.00 p/therm.

The weekend contract TRGBNBPWE dropped by 60.00 pence to 345.00 p/therm.

In the Dutch gas market, the front-month contract TRNLTTFMc1 edged down by 2.00 euros to 146 euros per megawatt hour (MWh), while the May contract TRNLTTFMc2 fell by 22.50 euros to 141.50 euros/MWh.

Most prices were down on profit taking and correcting after a sharp rise earlier in the week, traders said.

Analysts at Engie EnergyScan said factors such as more European nations asking for a temporary energy price cap, the first signs of demand destruction with Yara cutting ammonia output, the continuation of Russian gas flows and profit taking were all bearish.

Norway’s Yara, one of the world’s largest fertiliser makers, is curtailing its ammonia and urea output in Italy and France due to the surge in natural gas prices, it said on Wednesday.

“However, any escalation in Ukraine/Russia conflict will reflect on soaring UK gas price, which remains to be the major bullish risk,” said Refinitiv gas analysts.

The head of Ukraine’s gas transit operator said on Thursday there was a danger to gas transit flows to Europe because of the presence of Russian troops on the territory of gas compressor stations in Ukraine.

The operator did not say how many stations were affected or where they were.

Supply into Slovakia from Ukraine via the Velke Kapusany border point remained stable.

Total liquefied natural gas send-out was nominated at 42 million cubic metres (mcm), down from yesterday’s 67 mcm/day, Refinitiv Eikon data showed.

In the European carbon market, the benchmark contract CFI2Zc1 inched up by 0.36 euro to 73.54 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)