Prices fall on higher renewables output, Norwegian supply

LONDON, July 4 (Reuters) - British and Dutch gas prices fell on Tuesday morning on expectations that maintenance outages due to end at some Norwegian infrastructure would boost supply and as strong renewables output curbed gas demand for power.

The benchmark front-month Dutch contract was down 1.62 euros at 34.42 euros per megawatt hour (MWh) by 0845 GMT, Refinitiv Eikon data showed.

The Dutch-day ahead contract fell by 2.10 euros to 33.85 euros.

The equivalent British day-ahead contract was down 0.80 pence at 83.20 pence per therm.

Renewable power output from both wind and solar farms are expected to be above normal levels in Europe, Refinitiv analysts said.

“The downward price movement (on gas) was also supported by easing of fears over Norwegian production which jumped 11 million cubic metres/day (mcm/d) yesterday,” Refinitiv analyst Tim Crump said in a daily research note.

Fundamentally, the picture remains bearish, analysts said, with high storage stocks and strong renewables output expected to continue.

“What is certain … is that the market does not seem to want to initiate an uptrend,” analysts at Engie EnergyScan said.

Europe’s gas stocks are almost 78% full, latest data from Gas Infrastructure Europe showed.

Meanwhile, gas supply to Europe from Russia via Ukraine remains stable. Russia's Gazprom said it would send 42.4 million cubic metres of gas to Europe via Ukraine on Tuesday.

In the European carbon market, the benchmark contract was down 0.45 euros at 86.87 euros a tonne.