Europe Gas: Prices mostly rise on sustained Russian supply cuts

Fluxys Belgium SA

17/06/2022 10:06

June 17 (Reuters) - British and Dutch wholesale gas prices
mostly rose on Friday morning as Russian deliveries through the
Nord Stream 1 pipeline remained curtailed.
    The British day-ahead contract  TRGBNBPD1  jumped by 60
pence to 150 pence per therm by 0851 GMT.
    The Dutch day-ahead contract  TRNLTTFD1  was up 13.40 euros
at 130 euros per megawatt hour (MWh), while the front-month
contract  TRNLTTFMc1  was up 13.90 euros at 133.15 euros/MWh.
    However, both contracts were still off three-month highs
seen in intra-day trading on Thursday, before dropping on some
profit-taking, analysts said.            
    "Volatility should remain high as everyone holds their
breath and awaits what will happen to the gas flows during the
coming weeks," analysts at Energi Danmark said in a morning
note.
    Russian gas supplier Gazprom  GAZP.MM  this week cut
previously steady flows via the Nord Stream 1 pipeline through
the Baltic Sea into Germany to around 40% of capacity, citing
issues with Siemens made equipment at the Portovaya compressor
station near St Petersburg.  urn:newsml:reuters.com:*:nL1N2Y32JY    
    Since then, several European companies have reported lower
gas supplies, with Italy’s Eni  ENI.MI  confirming a third day
of curbed deliveries on Friday.  urn:newsml:reuters.com:*:nL8N2Y4180
    Additionally, an extended outage at U.S. liquefied natural
gas (LNG) export terminal Freeport LNG is clouding future
European supplies.  urn:newsml:reuters.com:*:nL4N2Y12WD   
    "Although the reduction of the Russian imports on the
current balance is limited, any prolonged cuts could threaten
European plans to comfortably replenish its gas storages before
the next winter," Refinitiv analysts said in a weekly note. 
    Gazprom is also sending a "troubling signal" through its
lack of clarity over the length of reduced Nord Stream 1 flows
and its decision to reduce supplies to Italy's Eni and Austria's
OMV instead of redirecting the flows via alternative routes,
they added.
    EU gas storages were last seen 52.45% full, according to Gas
Infrastructure Europe.
    Meanwhile, the British within-day contract  TRGBNBPWKD 
plunged by 120 pence to 85 pence per therm.
    The UK system was 11.4 million cubic metres over-supplied on
Friday morning, according to National Grid data.   
    In the European carbon market, the benchmark contract
 CFI2Zc1  eased by 0.01 euros to 82.99 euros a tonne.

 (Reporting by Nora Buli in OSLO; editing by Nina Chestney)
 ((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))