Dutch and British gas prices edged lower on Wednesday morning as healthy supply and high storage levels weighed on the market.

The benchmark front-month contract at the Dutch TTF hub was down 0.41 euro at 28.20 euros per megawatt hour (MWh) at 1000 GMT, LSEG data showed.

The April contract was down 0.60 euro at 28.30 euros/MWh.

In Britain, the day-ahead contract was 0.9 pence lower at 71.00 pence per therm, while the front-month contract slipped by 1.19 euros to 68.90 euros/MWh.

There is “no change to the overall outlook with some colder temperatures on the way and a level supply outlook, despite a continued unplanned outages in Norway,” analysts at consultancy Auxilione said in a daily research note.

Analysts at LSEG said total Norwegian export nominations had risen to 325 million cubic metres (mcm) a day from 294 mcm/day the previous day.

Engie EnergyScan said prices would be supported by coal switching levels which show the level at which switching fuels for energy generation becomes profitable.

“The drop in TTF March 2024 prices should be limited as they seem to have found an equilibrium around the middle of the range between the coal switching minimum level (22.19 euros/MWh) and the average one (32.20/euros MWh),” EnergyScan analysts said in a daily research note.

High gas storage sites in Europe, however, continue to limit price movements on the upside.

Europe’s gas stores are currently 69% full, the latest data from Gas Infrastructure Europe showed.

In the European carbon market, the benchmark contract CFI2Zc1 was down 0.33 euros to 63.25 euros a metric ton.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)