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Prices edge higher as Norwegian maintenance curbs supply

Thu, 29th Aug 2024 09:22

LONDON, Aug 29 (Reuters) - Dutch and British wholesale gas prices edged higher on Thursday morning as annual maintenance at several Norwegian gas infrastructure sites curbed supply.

The benchmark front-month contract at the Dutch TTF hub

was up 0.62 euros at 39 euros per megawatt hour
(MWh), or $12.67/mmBtu, by 0812 GMT, LSEG data shows.
The October contract was up 0.07 euros at 39.20
euros/MWh.
In the British market, the day-ahead contract
was up 0.4 pence at 92.50 pence per therm.

“Norwegian output is lower today compared to yesterday as planned maintenance begins to take hold, expected to continue
throughout much of September ahead of the winter delivery
period,” consultancy Auxilione said in a daily market report.

Norway's Kollsnes gas processing plant has an ongoing capacity reduction of 18 million cubic metres/day (mcm/d) until
Sept. 2, followed by a 61 mcm/d reduction for two days until
Sept. 4, LSEG data showed.

“Flows via Norway have dropped 24 mcm/d as the deluge of long-anticipated planned maintenances is upon us,” LSEG analyst
Tim Crump said in a daily report. “Terminal outages are expected
to rise to 125 mcm/d tomorrow.”

Supply of gas to Europe from Russia via Ukraine remained steady.
Russia's Gazprom said it would send 42.4 million
cubic metres (mcm) of gas to Europe via Ukraine on Thursday,
unchanged from Wednesday.

In the European carbon market, the benchmark contract was little changed, down 1 euro cent at 70.76 euros

per metric ton. (Reporting by Susanna Twidale Editing by David Goodman )

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