Europe Gas: British within-day price falls on over supply, interconnector outage

Fluxys Belgium SA

10/06/2022 10:15

LONDON, June 10 (Reuters) - British prompt gas prices fell
on Friday morning as an outage on the interconnector between
Britain and Belgium left Britain struggling to deal with an
oversupplied market. 
    The British gas contract for within-day delivery
 TRGBNBPWKD  fell by 7 pence to 17.00 p/therm by 0843 GMT having
earlier touched 5p/therm.
    "(The) Unplanned IUK technical outage caused severe export
capacity reduction and let to a considerable gas balance
oversupply on already loose UK market," analysts at Refinitiv
said in a daily research note.
    Available capacity at IUK was reduced on Thursday and will
be offline for much of Friday due to filter blockage, operator
Fluxys  FLUX.BR  said.  urn:newsml:reuters.com:*:nL8N2XW49H 
    High output from Britain's wind farms has also reduced gas
demand from power plants leaving the market oversupplied by
around 18 million cubic metres (mcm), National Grid data showed.
    Peak wind power output is forecast at 13.8 gigawatts (GW) on
Friday and 14.6 GW on Saturday, Elexon data showed.
    Refinitiv analysts forecast gas-for-power demand at 36
mcm/day for Friday, down 22 mcm/d from their previous forecast.
    In the Dutch market, prices edged high after climbing on
Thursday in response to news that major liquefied natural gas
(LNG) exporter, Freeport LNG would close its Texas coast
facility for at least three weeks following an explosion.
 urn:newsml:reuters.com:*:nL4N2XW35T
    The benchmark July contract  TRNLTTFMc1  was up 0.35 euros
at 85.00 euros per megawatt hour.
    A three-week shutdown will mean the loss of around 13-15
cargoes which analysts said would be manageable for Europe but
risks remain if the shutdown is extended.  urn:newsml:reuters.com:*:nL1N2XW1RK
    Russian gas delivery to Europe via the Nord Stream 1
pipeline across the Baltic Sea and through Ukraine remained
stable on Friday morning, while eastbound flows rose along the
Yamal-Europe pipeline to Poland from Germany, operator data
showed.  urn:newsml:reuters.com:*:nL1N2XX0F5
    In the European carbon market, the benchmark contract
 CFI2Zc1  rose 0.41 euros to 81.42 euros a tonne.

 (Reporting by Susanna Twidale; editing by David Evans)
 ((susanna.twidale@thomsonreuters.com; +44 207 5424753;))