British and Dutch gas prices fell on Thursday morning, as milder weather and stronger wind forecasts for next week helped to alleviate the impact of reduced power output and LNG terminal closures in France.

The British day-ahead contract was 6.25 pence lower at 109.00 pence per therm by 0920 GMT, according to Refinitiv Eikon data.

The benchmark front-month contract at the Dutch TTF hub was down 2.78 euros at 40.80 euros per megawatt hour (MWh), it lowest level since Aug. 2021.

Even though ongoing strikes in France have reduced power supply by 8.2 gigawatts, milder weather forecasts and a ramp-up in storage withdrawals is helping the country to cope with lower liquefied natural gas send-out, said Refinitiv gas analyst Marina Tsygankova.

France’s LNG terminals have been shut since March 7 due to strikes. Some cargoes have been diverted to the Netherland and Britain.

A cold spell is forecast to continue across Britain until the end of this week but milder temperatures are forecast for next week. In north-west Europe, temperaturs are expected to increase above normal levels next week.

“Milder weather and comfortable gas stock levels help to alleviate concerns about weaker supply (particularly from Norway due to maintenance works) that might have arisen otherwise,” said analysts at Engie EnergyScan.

“Moreover, forecasts of a strong rise in wind generation are clearly limiting buying interests by gas-fired power generators,” they added.

Meanwhile, the U.S. energy regulator on Wednesday granted Freeport LNG’s request to return to service the last of its three gas liquefaction units and phase 1 facilities at its export plant in Texas.

In the European carbon market, the benchmark contract was 1.93 euros higher at 99.78 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)