Europe: Gas Prices Fall as Some Norwegian Outages End

Credit; Gassco
Credit; Gassco

Dutch and British wholesale gas prices fell on Friday morning as Norwegian pipeline supplies picked up after some maintenance outages ended.

The Dutch October contract edged down by 0.68 euro to 38.95 euros per megawatt hour (MWh) by 0820 GMT, while the November contract was 1.15 euros lower at 41.95 euros/MWh, according to LSEG data.

In the British market, the October contractwas 1.25 euros lower at 99.00 pence per therm, while the weekend contract was 2.50 pence lower at 96.00 p/therm.

"With Norwegian gas production nominated higher this morning compared to yesterday and an upward revision in temperature forecasts for the second week of October overnight, the fundamental picture remains slightly bearish for the prompt," said analysts at Engie EnergyScan.

Some Norwegian gas outages have ended but there have been some revisions in the schedule for October.

"Our outlook remains bearish when looking at the improving supply outlook from Norway over the coming days with outage impacts decreasing," said Wayne Bryan, head of European gas research at LSEG.

Currently, the maximum curtailment to Norwegian gas production will be 34 million cubic metres a day from Oct 9-10 until maintenance outages end on Nov. 11, he added.

Piped exports of natural gas from Norway to Europe are down 6.4% year-on-year due to a higher level of maintenance, but the country is ready to supply the gas needed for winter, the head of pipeline system operator Gassco told Reuters.

In early September, Norwegian flows fell to their lowest in at least a decade, LSEG data showed. Gassco said it was not yet able to provide data for this month.

But Gassco CEO Frode Leversund said the maintenance programme was largely completed and deliveries were rising. 

In Britain, UK gas-for-power demand is forecast higher on the day-ahead as the impact of storm Agnes wanes over the weekend and lower wind speeds are expected.

In the European carbon market, the benchmark contract CFI2Zc1 inched up by 0.09 euro to 82.80 euros a tonne.


 (Reporting by Nina Chestney)

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