Dutch and British gas prices were mixed on Thursday morning as lower temperatures raised demand for heating while full storage tanks limited gains.

The Dutch December contract TRNLTTFMc1, the new front-month benchmark, was up by 0.55 euros at 47.35 euros per megawatt hour (MWh) by 1002 GMT. The January contract TRNLTTFMc2 slipped 0.35 euro to 49.25 euros/MWh.

In Northwest Europe, temperatures are expected to be 1.7 degrees Celsius lower on day ahead and through the weekend.

LSEG analyst Wayne Bryan said that there was a bullish ramp up in demand for heating on the day ahead with temperatures dropping 2 degrees Celsius. However, supply remained robust and storages were brimming so these increases should not cause any bullish reactions, Bryan added.

The Dutch day-ahead contract TRNLTTFD1 was almost flat at 36.25 euros/MWh. The British day-ahead contract TRGBNBPD1 dropped by 1.10 pence to 85.50 pence/therm while the contract for the weekend delivery TRGBNBPD1 rose by 2 pence to 87.00 p/therm.

Europe’s gas storage sites remain nearly full, at 99.32% of capacity, according to the latest Gas Infrastructure Europe data.

“With gas storage now brimming at the limit, EU traders may now look towards using facilities in Ukraine – something looked at several years ago – for any excess gas they want to store for winter,” consultancy Auxilione said in a note.

Bryan said that as storm Ciaran continues to lash the United Kingdom, wind speeds are high and are expected to remain so for the majority of LSEG analysts’ forecast period.

Peak wind power generation in Britain was forecast at 16.3 gigawatts (GW) on Thursday and at 15.5 GW on Friday, Elexon data showed.

In the European carbon market, the benchmark contract CFI2Zc1 fell 0.39 euros to 78.15 euros a tonne.
Source: Reuters (Reporting by Marwa Rashad; Editing by Emelia Sithole-Matarise)