Europe Gas: British gas prices rebound after interconnector outage ends

Fluxys Belgium SA

13/06/2022 09:50

LONDON, June 13 (Reuters) - British gas prices rebounded on
Monday following a sharp fall at the end of last week after an
interconnector between Britain and Belgium resumed operations
and as lower wind generation raised expectations for gas demand.
    The British gas contract for within-day delivery
 TRGBNBPWKD  rose by 138 pence to 147 p/therm by 0833 GMT after
falling to 9 p/therm on Friday.
    The day-ahead contract  TRGBNBPD1  rose by 54 pence to 145
p/therm.
    "The UK-Belgium interconnector is now back, so they can sell
again into Europe where we now have less Nord Stream 1 flows.
There is a bit of panic but again bids getting squashed as we
see more flows on LNG," a European gas trader said.  LNG/TKUK 
    The pipeline was shut on Thursday because of a filter issue,
but resumed operations on 1100 GMT on Saturday.  urn:newsml:reuters.com:*:nL1N2XX1HO
    The British system is 26.6 million cubic meters (mcm)
undersupplied on Monday, according to national grid data. 
    Peak wind power generation in Britain is forecast at 9.2
gigawatts (GW) on Monday and at 3.6 GW on Tuesday, out of a
total metered capacity of 19.9 GW, Elexon data showed. 
    Refinitiv analysts said British gas for power demand was
expected to rise next week as wind power generation was forecast
 to drop.
    In the Dutch market, prices were slightly lower on concerns
about lower Russian gas flows into Germany via Nord Stream 1
pipeline. 
    The benchmark July contract  TRNLTTFMc1  was down 0.45 
euros at 82.40 euros per megawatt hour. 
    Physical flows to Germany through Nord Stream 1 across the
Baltic Sea stood at 52,845,172 kWh/h on Monday morning, down
from 62,497,213 kWh/h in the previous 24 hours, following a drop
in nominations, or requests for gas.  urn:newsml:reuters.com:*:nL1N2Y00C6
    Norwegian oil firms and employees have agreed in principle a
new wage deal, avoiding for now a strike at nine fields that
could have hit the country's oil and gas sector.  urn:newsml:reuters.com:*:nL1N2XZ05V
    Analysts at Engie's EnergyScan said gas prices could go
higher if the current mediation talks in Norway's oil and gas
sector fail and lead to a strike and a drop in Norwegian flows. 
    In the European carbon market, the benchmark contract
 CFI2Zc1  fell by 1.43 euros to 80.43 euros a tonne.

 (Reporting by Marwa Rashad; Editing by Edmund Blair)
 ((marwa.rashad@thomsonreuters.com; +447823669044; Reuters
Messaging: marwa.rashad.thomsonreuters.com@reuters.net))