British and Dutch wholesale gas prices were down on Wednesday morning as steady flows of liquefied natural gas (LNG) offset a rise in heating demand due to a temperature drop.

The benchmark Dutch front-month contract at the TTF hub (TRNLTTFMc1) was down 0.47 euro at 31.88 euros per megawatt hour (MWh), or $10.73/mmBtu, by 1024 GMT, LSEG data showed.

The British front-month contract (TRGBNBPMc1) was down 1.17 pence at 83.65 p/therm.

Local distribution zone demand, which refers to domestic heating demand, is expected to rise by 171 gigawatt hours per day on the day ahead at 2295 GWh/d due to dropping temperatures, LSEG data showed.

Gas for power demand is also expected to increase by 334 GWh/d on the day ahead at 2729 GWh/d, as wind power output is plummeting towards a wind lull during the weekend and into next week, according to LSEG data.

“The wind lull in the forecast is quite exceptional, with German wind power output dropping to levels of 1-2 GW on Saturday and Sunday, compared to a normal level of 21 GW,” said LSEG analyst Saku Jussila.

British peak wind power generation is forecast at 13.08 gigawatts on Wednesday dropping to 11.00 GW on Thursday, Elexon data showed.

EU gas storage inventories are 83.02% full, compared with 95.20% last year, Elexon data showed.

In the European carbon market, the benchmark contract (CFI2Zc1) was up 0.60 euro at 81.81 euros a metric ton.
Source: Reuters