Europe Gas: Prices extend gains on Nord Stream 1 repairs (updated)

Fluxys Belgium SA

14/06/2022 14:20

(Updates throughout after)
    By Nina Chestney
    LONDON, June 14 (Reuters) - British and Dutch wholesale gas
extended gains on Tuesday afternoon after Gazprom said capacity
to supply gas to Europe through Nord Stream 1 was constrained
due to repair works.
    The Dutch day-ahead contract  TRNLTTFD1  was up 7.00 euros
at 88.00 euros per megawatt hour (MWh) by 1251 GMT, while the
July contract  TRNLTTFMc1  was 8.80 euros higher at 93.00
euros/MWh.
    The British gas contract for within-day delivery
 TRGBNBPWKD  rose by 11.00 pence to 161.00 pence per therm by
1250 GMT, while July contract  TRGBNBPMN2  was 7.75 pence higher
at 164.75 euros/MWh.
    Gazprom said capacity to supply gas to Europe through the
Nord Stream 1 pipeline was constrained due to delayed repair
works.  urn:newsml:reuters.com:*:nL8N2Y132H
    The capacity of the pipeline is now capped at 96 million
cubic metres (mcm) per day, instead of 160 mcm/day.
    However, there was no immediate sign of a dip in flows,
according to the pipeline operator website. Germany's economy
ministry said security of supply continued to be guaranteed.
 urn:newsml:reuters.com:*:nS8N2V402W
    "This new element will further constrain Russian supply
which was already on a downward trend in recent days," said
analysts at Engie EnergyScan.
    "If the problem on Nord Stream 1 is resolved quickly, the
market could resume its downtrend. Otherwise, a gradual rise to
the 1-year high (currently at 195 euros/MWh) could be a
possibility," they added.
    Wind output in Britain and north-west Europe is low,
increasing gas-for-power demand, but wind speeds are expected to
recover towards the weekend and next week.
    In the European carbon market, the benchmark contract
 CFI2Zc1  rose by 2.15 euros to 83.69 euros a tonne.

 (Reporting by Nina Chestney)
 ((nina.chestney@thomsonreuters.com;
nina.chestney.thomsonreuters.com@reuters.net))