Dutch and British wholesale gas prices edged higher on Friday morning as forecasts for lower wind power output increased demand for gas from power plants, but solid supply capped gains.

The benchmark Dutch front-month contract at the TTF hub was up 0.70 euros at 28.05 euros per megawatt hour (MWh) or $9.63/mmBtu, by 0918 GMT, LSEG data showed.

The Dutch February price was up 0.38 euros at 27.43 euros/MWh.

The British day-ahead contract was up 1.85 pence at 72.75 p/therm.

Non-local distribution zone demand in Northwest Europe, which includes power plant demand, is expected up 133 gigawatt hours/day on the day-ahead, LSEG data showed, due to a dip in wind power output.

In Britain peak wind power output is forecast at 13.4 gigawatts on Saturday down from 20 GW on Friday, Elexon data showed.

“Any further bullish intentions were tempered by strong supply fundamentals and the expectation of increased LNG imports that could offset any surge in demand,” Wayne Bryan, director of European Gas Research at LSEG said.

Supply was stable with Norwegian export nominations at 348mcm/d, a range they have been near since December 11, LSEG data showed.

Europe’s gas storage sites are 68.2% full, latest data from Gas Infrastructure Europe showed.

“Overall, European net gas storage withdrawals dropped strongly yesterday; they are expected to increase moderately today,” analysts at Engie EnergyScan said.

In the European carbon market, the benchmark contract (CFI2Zc1) was 0.27 euros higher at 86.76 euros a metric ton.
Source: Reuters