Dutch and British gas prices edged higher on Friday as expectations of a strike grew at Australian liquefied natural gas facilities after workers rejected a pay offer, but high gas storage inventories and muted demand kept a lid on gains.

The Dutch October contract TRNLTTFMc1 rose 0.22 euro to 36.00 euros per megawatt hour (MWh) by 0833 GMT, while the day-ahead contract TRNLTTFD1 was 0.50 euro higher at 32.25 euros/MWh, according to Refinitiv Eikon data.

In the British market, the day-ahead contract TRGBNBPD1 was up 1.25 pence at 82.25 p/therm.

Prices were rebounding after falling on Thursday on news that Chevron CVX.N workers at two of Australia’s largest liquefied natural gas (LNG) facilities have rejected a company pay and conditions offer.

Work stoppages are planned for next week and will now likely go ahead pending another deal offer.

However the price impact has been limited.

“In a context of low demand and comfortable stocks… the market did not seem to be worried about it,” analysts at Engie EnergyScan said in a daily market note.

Europe’s gas stocks are currently around 92.8% full latest data from Gas Infrastructure Europe showed.

Forecasts of above normal temperatures for the time of year in Britain and the continent was curbing demand for gas Refinitiv analyst Ulrich Weber said in a daily research note.

“There are, however, little changes to the near-term factors with the demand outlook remaining soft,” he said.

In the European carbon market, the benchmark contract CFI2Zc1 edged down by 0.38 euro to 85.38 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Mike Harrison)