Prices rise on firm demand and French strikes

LONDON, March 24 (Reuters) - British and Dutch wholesale gas prices rose on Friday morning due to firm demand and as industrial action affected operations at French nuclear plants and liquefied natural gas (LNG) terminals.

The front-month contract at the Dutch TTF hub rose by 2.32 euros to 43.15 euros per megawatt hour (MWh) by 0936 GMT, Refinitiv Eikon data showed.

The British contract for weekend was up 7.50 pence at 101.00 pence per therm.

"We expect a slightly bullish sentiment to prevail, supported by ... higher local distribution zone (LDZ) and gas for power demand forecast on DA (UK day-ahead) due to the cooler weather and weakening winds," said Refinitiv analyst Tomasz Marcin Kowalski.

"The risk of extended strikes at LNG terminals in France could also support bullish sentiment," he added.

Industrial action in France over pension continued, hitting LNG terminals, power supply and nuclear reactor maintenance.

TTF prices, however, were on track for a second consecutive weekly drop as ample inventories put pressure on prices.

Analysts at Energy Aspects said TTF prices could fall further due to bearish sentiment in the European gas market and the relatively loose balance into summer.

"The TTF can be close to 40 euros/MWh for Q2 2023 delivery (given high inventories and brisk LNG receipts) and still leave Europe on track for adequate end-October stocks. Even prices below this level are possible for a few weeks," they said.

Analysts at Engie EnergyScan also said the downtrend was strong as both daily prices and the 5-day average continued to trade below the 20-day average.

European gas storage sites were around 55.5% full, the latest data from Gas Infrastructure Europe showed

Meanwhile, Norwegian gas nominations to Britain remained stable, while nominations to Germany and Netherlands edged up.

Peak wind generation was expected at around 12.5 gigawatts (GW) on Friday and around 13.5 GW on Saturday, out of a total metered capacity of more than 22 GW, Elexon data showed.

In the European carbon market, the benchmark contract was steady at 92.65 euros a tonne.

National Grid