Dutch and British gas prices were again mixed on Thursday with the market awaiting clarification over potential strikes at Australian liquefied natural gas (LNG) facilities, and as maintenance in Norway continues to curb supply.

The Dutch October contract rose by 0.90 euros to 31.75 euros per megawatt hour (MWh) by 0903 GMT, while the November contract was down 0.20 euros at 42.70 euros/MWh, LSEG Eikon data showed.

Dutch natural gas prices fell by almost 10% on Wednesday on growing optimism that strike action at two of Chevron’s LNG facilities in Australia may be avoided, analysts at ING said.

“The two facilities make up around 6% of global LNG supply, so the market continues to watch these developments closely,” they added.

Strike action at Chevron’s two major LNG projects in Australia was paused for 24 hours because of progress made in mediation talks, raising prospects the parties may be nearing a deal.

An agreement and strike cancellation could see prices drop by some 4-5 euros initially, before rising again somewhat to account for some risk premium heading into the winter, a trader said.

In the British market, the October contract fell by 0.25 pence to 77.25 p/therm, while the day-ahead contract was up 3.25 pence at 78.50 p/therm, supported by lower wind power and reduced Norwegian supplies.

Norwegian pipeline gas deliveries to Europe remain heavily curtailed amid extension to some planned and unplanned maintenance, including at the massive Troll field and key processing plant Kollsnes.

“The upside will be limited as many these of these maintenances will be coming to an end or starting to increase sendout over this coming weekend,” LSEG analyst Timothy Crump said in a morning note.

In the European carbon market, the benchmark contract was up by 0.20 euros at 83.87 euros a tonne.
Source: Reuters (Reporting by Nora Buli; Editing by Jan Harvey)