LAST UPDATE 19:40
Wholesale gas prices in the Netherlands and Britain rose to new record highs today in anticipation of power outages in Norway in September, lower French nuclear output and uncertainty over Russian gas flows after a planned maintenance next week.
The European natural gas contract for September reached up to 323 euros megawatt hour at midday today at the Amsterdam Energy Hub (TTF), while now moving slightly lower at 310 euros the megawatt hour with an increase in its price exceeding the 6%.
In Britain, the spot price rose 82 pence to 580 pence and the contract for next-day delivery rose 72.15 pence to 576.65 pence, also at a record high.
“September will bring heavy maintenance on the Norwegian continental shelf and at the same time we expect simultaneous outages at the exit terminals for Norwegian natural gas,” says a Refinitiv analyst.
Flows will be affected by maintenance work and outages at various fields and at many facilities across the country.
In addition, Gazprom will halt gas supplies to Europe via Nord Stream for three days from August 31 to September 2, putting pressure on the region as it tries to refuel ahead of winter.
The market is worried that flows will not recover, even with the lowest capacity rate at 20% now, after the holiday.
“As long as European gas stocks are not full, demand will continue to support prices, along with demand for gas for power generation, which remains resilient,” analysts at Engie EnergyScan noted.
European gas storages are 78% full, reaching the Commission’s target of 80% by October 1.
Source: Capital
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