Europe gas-prices firm after 3-day decline as market tightness persists
XLE•Benchmark gas prices edge higher
Benchmark Dutch and British wholesale gas prices firmed on Friday morning, after three days of decline, on support from disruptions to liquefied natural gas (LNG) shipping, Norwegian maintenance and low European storage levels.
The benchmark Dutch front-month contract at the TTF hub TFMBMc1 rose by €1.91 to €78.27 per megawatt hour (MWh) by 0826 GMT, ICE data showed.
The British front-month contract NGLNMc1 rose by 4.72 pence to 195.45 pence per therm.
Weather and carbon market context
At the same time, above-normal temperatures should limit demand for heating in the next two weeks, according to LSEG data.
In the European carbon market, the benchmark contract CFI2Zc1 was up €0.62 at €86.65 per metric ton.
Storage and supply concerns persist
However, low European storage levels ahead of the heating season remain a concern and could prove supportive to the price development again as early as today, they added.
EU gas storage is 68.8% full, 12.1 percentage points lower year-on-year, according to data from Gas Infrastructure Europe.
"Even though TTF prices have corrected downwards from their recent highs, the still relatively low level of European LNG imports and gas stock levels does not justify a trend reversal for now," analysts at Engie EnergyScan said.
Total Norwegian export bookings were at 267.2 mcm per day on Friday, up from 258.7 mcm/day on Thursday but far off typical full capacity levels around 340 mcm/day, data from infrastructure operator Gassco showed.
Scheduled and unplanned maintenance, including at the country's largest gas field — Troll — is set to keep Norwegian supply curtailed until the end of the month.
