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EUROPE GAS-Prices gain as extra Russian gas remains elusive

Mon, 08th Nov 2021 10:04

Nov 8 (Reuters) - British and European wholesale gas prices
rose on Monday morning in a market on tenterhooks awaiting
confirmation of additional Russian gas flows to Europe to fill
depleted storage levels and help cover winter demand.

* The British contract for next day delivery
rose 10
pence to 1.90 pounds per therm by 0950 GMT, while the within-day
contract rose 6.50 pence to 1.87 pounds/therm.

* The Dutch day-ahead contract was up 5.00 euros
at
78.00 euros/ megawatt hour.

* The Dutch December contract was up 3.10 euros
at
77.00 euros/MWh.

* Low Russian flows into Europe, especially via the German
entry
point of Mallnow on the Polish border, remain the key bullish
driver, traders said.

* Physical net gas flows on the Yamal-Europe pipeline from
Russia
into Germany at Mallnow remained at zero on Monday morning, data
on German transmission company Gascade's website showed.

* Renomination data suggest gas could start flowing westward
later
today, albeit at low volumes, while there are no signs more gas
would be flowing.

* "Indeed, yesterday, Gazprom did not book extra
transportation
capacity at daily auctions, eliminating the hopes of an increase
in Russian flows from today," analysts at Engie Energyscan said
in a report.

* Gazprom-controlled gas storage sites in Europe have less
gas
than usual for this time of year, with Russia saying it is
concentrating on replenishing domestic stocks - expected by
today - before releasing any more gas to Europe.

* "The market will also look for indications in Gazprom
storages
and also this afternoon's auctions for day-ahead capacity at
Mallnow," a trader said.

* Mallnow matters because the route offers spare capacity
compared
to other routes, the trader added.

* Meanwhile, colder weather forecast for northwest Europe
also
supported prices, traders said.

* In other markets, the benchmark Dec-21 EU carbon
contract was up 0.85 euros at 60.24 euros a tonne.
(Reporting by Nora Buli in Oslo, editing by Susanna Twidale)

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