Jan 10 (Reuters) - British and near-term Dutch wholesale gas
prices rose on Monday morning on lower wind output and the
weather outlook while some longer-term contracts were down on
healthy LNG supply.
The British contract for day-ahead delivery was
up 6.00 pence at 205.00 pence per therm by 0954 GMT, and the
February contract inched up by 0.50 pence to 212.00
pence/therm.
The Dutch TTF front-month contract gas contract
, a European benchmark, was up 3.10 euros at 87.10
euros per megawatt hours (MWh), while the day-ahead price
was up by 2.30 euros at 86.70 euros/MWh.
Pipeline supply of Norwegian gas to Britain and Europe was
slightly down on Monday, while flows of Russian gas on the
Polish section of the Yamal-Europe pipeline remained in reverse
going eastward and supplies on another pipeline route via
Ukraine also consistently low. [
Analysts at Refinitiv said they expected prices to rise on a
colder weather outlook and lower wind power generation, which
should support gas-for-power demand.
Models show temperatures in Britain should drop below the
seasonal norm again for Wednesday and in north-west Europe from
Tuesday, Refinitiv Eikon data showed.
UK peak wind generation is expected at 9.8 gigawatts (GW) on
Monday and 8.5 GW on Tuesday, out of total metered capacity of
around 20 GW, Elexon data showed.
However, scheduled arrivals of liquefied natural gas (LNG)
cargoes increased over the weekend.
In the Dutch gas market, contracts further along the curve
were down.
Net withdrawals of gas from European storage are currently
at historically low levels, offering a slight improvement to low
storage levels, analysts at Engie EnergyScan said in a morning
note, but they still expected an uptick in prices.
"This upcoming rebound is backed by the higher levels of
Asia Japan-Korea Marker (LNG) prices (despite lower withdrawals,
gas stocks remain too weak to allow Europe to do without LNG),"
they said.
In other markets, the European benchmark December 2022
emission allowance (EUA) contract fell by 2.00 euro to
83.42 euros a tonne.
(Reporting by Nora Buli in Oslo; editing by Nina Chestney)