EUROPE GAS-Prices mixed amid strong LNG, UKraine-Russia tensions

LONDON, Feb 3 (Reuters) - British and Dutch gas prices were
mixed on Thursday morning, with traders watching how tensions
between Russia and the West over Ukraine unfold amid strong
flows of liquefied natural gas (LNG).

The British day-ahead gas price was up by 1.00
pence at 177.00 pence per therm by 1042 GMT. The Dutch
equivalent day-ahead contract was 1.82 euros higher
at 78.32 euros per megawatt hour (MWh).

The Dutch contract for March was down by 0.74
euro at 76.85 euros/MWh.

"LNG is still arriving...the only reason for things to push
higher is if we still have (reverse gas) flows," a European gas
trader said.

In January, Europe remained the top destination for
shipments of U.S. liquefied natural gas (LNG), according to
Refinitiv data, outpacing exports to Asia for the second month
in a row.

Gas flows from Germany to Poland resumed on Wednesday
evening via the Russian Yamal-Europe pipeline, which usually
sends Russian gas westwards into Europe, data from German
network operator Gascade showed.

The pipeline, which usually accounts for about a sixth of
Russia's annual gas exports to Europe and Turkey, has been
operating in reverse mode since December, putting upward
pressure on European gas prices.

Meanwhile, NATO said Russia had stepped up deployments to
Ukraine's northern neighbour Belarus in recent days and was
expected to have 30,000 troops there for joint military
exercises this month.

"The absence of de-escalation signs in the Russia-Ukraine
conflict could provide some support to the curve," Engie's
EnergyScan analysts said.

Warmer-than-normal temperatures in Britain and north-west
Europe are expected to fall towards normal levels this week
before rising over the weekend, Refinitiv Eikon data showed.

European gas traders are now more confident the region’s
inventories will remain sufficient through the end of winter,
avoiding a price spike or the need for governments to introduce
rationing.

The European carbon market benchmark December 2022
contract was down 0.91 euros at 93.30 euros/tonne.
(Reporting by Marwa Rashad; Editing by Nina Chestney)