Prices fall as strong renewable generation dents demand

LONDON, Aug 4 (Reuters) - British and Dutch gas prices fell on Friday morning as expectations of strong output from wind farms curbed demand for gas from power stations.

The front-month Dutch contract fell by 0.80 euro to 29.00 euros ($31.73) per megawatt hour (MWh) by 10.00 GMT according to Refinitiv data.

The Dutch day-ahead contract fell by 1.90 euros to 28.10 euros/MWh.

The equivalent British day-ahead price was 5.5 pence lower at 70.00 pence per therm.

“On the bearish side, the gas for power demand is set to decrease as strong wind power generation is expected on Monday,” Refinitiv gas analyst Ulrich Weber said in a daily research note.

In Britain gas for power demand for Monday is forecast at 3 million cubic meters (mcm/day) lower than current levels, Refinitiv data showed.

As well as an increase in wind power a near 600 megawatt (MW) nuclear power unit is expected to return to service at the weekend in Britain following maintenance.

Wind power is expected to treble in Germany on Monday, Refinitiv data showed.

Gas supply from Russia to Europe via Ukraine remained stable.

Russia’s Gazprom said it would ship 42.4 million cubic metres of gas to Europe via Ukraine on Friday, the same volume as on Thursday.

In the European carbon market, the benchmark contract edged up by 0.18 euro to 84.95 euros a tonne. ($1 = 0.9138 euros)