Wholesale gas prices in the Netherlands and Britain rose to new record highs today on expectations of power outages in Norway in September, lower French nuclear output and uncertainty over Russian gas flows after the planned maintenance next week.
The Dutch September delivery contract rose 15.95 euros to 315.95 euros per megawatt hour, a new record high, while the price for the December contract rose 30.55 euros to 319.75 euros.
The winter contract is 42 euros higher, at 315 euros per megawatt hour.
In Britain, the spot delivery contract rose 82 pence to 580 pence and the next-day delivery contract 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.