Dutch and British gas wholesale prices fell on Thursday for the fourth day in a row on healthy inventories and strong supply while lower renewables generation kept losses in check.
The benchmark front-month contract TRNLTTFMc1 at the Dutch TTF hub was down 0.45 euros at 30.65 euros per megawatt hour (MWh) by 0938 GMT, LSEG data showed.
The day-ahead contract TRNLTTFD1 fell by 0.30 euros to 30.70 euros/MWh.
In Britain, the day-ahead contract TRGBNBPD slipped by 0.65 pence to 78.75 pence per therm while the February contract TRGBNBPMc1 lost 2.45 pence to 75.00 p/therm.
A Rystad Energy research note said that a significant temperature drop across Europe is expected in the coming days, with temperatures in northwest Europe expected to hit minus 4 degrees Celsius and could strengthen downstream gas demand and European pipeline gas prices.
However, other analysts and traders said that strong flows of liquefied natural gas (LNG) and pipeline supply from Norway are expected to remain strong.
European gas storage sites were 82.6% full, the latest data from Gas Infrastructure Europe showed, contributing to the downward pressure on prices.
LNG’s Japan Korea Market (JKM) price, widely used as an Asian benchmark, slipped below $10 per million British thermal units (mmBtu) this week for the first time since July 2023 but are now back at a little more than $10.
This price level could attract spot purchases by some Asian buyers, though high inventories in both Europe and Asia have quelled concern over competition for cargoes.
Meanwhile in the European gas market, lower renewables generation prevented further price falls.
In Britain, peak wind power generation was forecast at 6.7 gigawatts (GW) on Thursday, falling to 5.5 GW on Friday, out of total metered capacity of about 23 GW, Elexon data showed.
LSEG analyst Tomasz Marcin Kowalski said that strong LNG sendouts and stock withdrawals are expected to continue balancing the UK system despite a colder long-term weather forecast for February.
In the European carbon market, the benchmark contract CFI2Zc1 slipped by 0.79 euros to 69.20 euros a metric ton.
Source: Reuters (Reporting By Marwa Rashad, Editing by David Goodman)