Dutch and British wholesale gas prices inched up on Wednesday morning as a storm in the United States strengthened into a hurricane, posing a risk for liquefied natural gas (LNG) export operations in the south.

The benchmark front-month contract at the Dutch TTF hub was 0.13 euros higher at 35.65 euros per megawatt hour by 0814 GMT, LSEG data showed.

In the British market, the day-ahead contract TRGBNBPD1 was 1.25 pence higher at 86.50 pence per therm.

“Prices aren’t up much but there could be some disruption to LNG supply if the hurricane in the States damages plants there,” a gas trader said.

Storm Francine in the United States which strengthened into a hurricane on Tuesday night.

It is expected to make landfall on Wednesday near Thibodaux in Louisiana. Its path promises a major test for LNG export plants recently built in the region.

Oil prices also recovered slightly on Wednesday on concerns about disruption from the hurricane.

Meanwhile, Russian forces have attacked energy infrastructure in four regions in the past 24 hours, Ukraine’s energy ministry said on Wednesday.

Next week, warmer weather forecasts should dampen demand, while Nowegian pipeline gas and liquefied natural gas supply are stable.

Total Norwegian export nominations are 1 million cubic metres (mcm) higher at at 193mcm/d today. Continental flows remain unchanged at 177 mcm/d. Currently, the Baltic Pipe, Dornum, and Langeled pipeline are fully shut down, LSEG data showed.

In the European carbon market, the benchmark contract CFI2Zc1 was 0.38 euro higher at 65.30 euros per metric ton.
Source: Reuters (Reporting by Nina Chestney)