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EUROPE GAS-Prices rise ahead of capacity auctions, eyes on Russian supply

Mon, 18th Oct 2021 09:58

LONDON, Oct 18 (Reuters) - British and European wholesale
gas prices rose on Monday morning ahead of gas transit capacity
auctions that could provide an indication of Russian supply to
Europe for the next months.

* The Dutch wholesale gas price for November
was
4.70 euros higher at 93.15 euros per megawatt hour (MWh) by 0818
GMT.

* The Dutch wholesale gas contract for December
rose
by 4.30 euros to 93.55 euros/MWh.

* Deputy Prime Minister Alexander Novak said on Saturday
Russian
gas consumption is running at a record high but Moscow is still
ready to increase supplies to Europe should it receive such
requests.

* He also said that commercial gas deliveries via Nord
Stream 2
may start right after the German regulator grants its
permission.

* The operator of Russia-led Nord Stream 2 gas pipeline on
the bed
of the Baltic Sea said on Monday the first string of the
pipeline has been filled with technical gas. The pipeline is
still expected to get a certification from a German regulator to
start commercial sales of natural gas.

* "Mixed messages from Russia over the last few days as well
as
the fact nothing has been booked or flows to northwest Europe
have not increased tells us that risk remains firmly on the
table," Refinitiv analysts said.

* The next monthly gas capacity auction on Monday will be
closely
watched.

* "We can expect a volatile trading day as well as an
insight into
Gazprom's intentions for additional gas supply into NWE after
recent comments," they added.

* A gas trader said he expects sideways moves until the end
of the
week then it will depend on the weather.

* In the UK market, the British wholesale gas contract for
immediate delivery was up 7.2 pence to 2.09 pounds
per therm.

* The day-ahead price was up 5.0 pence at 2.08
pounds
per therm.

* Temperatures in the UK are forecast to rise significantly
above
season seasonal norm on the day-ahead but fall again by the
weekend, Refinitiv Eikon data showed.

* Wind power in Britain is forecast at 10 gigawatts (GW) on
Monday
and slightly higher at nearly 12 GW on Tuesday, Elexon data
showed.

* The benchmark Dec-21 EU carbon contract went
down 1.0
euro to 58.76 euros a tonne.
(Reporting by Marwa Rashad; editing by Nina Chestney)

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