Gas

Gas prices fall to near four-week low on hopes of Nord Stream 1 restart

Published: Updated:
Enable Read mode
100% Font Size

Dutch and British wholesale gas prices fell to their lowest level since early August on Friday on indications that Nord Stream 1 flows will resume on Saturday, although analysts remained cautious.

The British contract for day-ahead delivery fell by 41.00 pence to 300.00 pence per therm by 0927 GMT, and the weekend contract fell 50 pence to 300 p/therm.

For the latest headlines, follow our Google News channel online or via the app.

On the continent, the Dutch TTF day-ahead gas contract was down 36.15 euros at 199.35 euros per megawatt hour (MWh).

Dutch gas for October was down 19.00 euros at 215.00 euros/MWh.

Operator data on nominations for gas on the Nord Stream 1 pipeline from Russia to Europe suggest flows should resume from Saturday morning, when Gazprom has said maintenance is scheduled to be completed.

“This is not binding as there could be renominations but it is a positive sign for beleaguered European gas markets,” analyst Wayne Bryan at Refinitiv said.

Europe is heading into the weekend not certain that gas will start flowing through Nord Stream 1 tomorrow, said Craig Erlam, analyst at Oanda.

“Grid data suggests it will but until the gas starts actually flowing, it remains a risk,” he added.

Russia has halted supply via Nord Steam 1, Russia’s biggest pipeline to Europe, for a three-day maintenance outage.

Good supply of liquefied natural gas (LNG) was also a bearish factor with a new LNG terminal in the Dutch port of Eemshaven due to start operations next week, Refinitiv’s Bryan said.

However, lower nominations at LNG terminals in France could be bullish, especially were Nord Stream 1 flows not to return, as was heavy maintenance and the risk of extension in Norway, he added.

European gas storages were 80.35 percent full as of August 31, according to Gas Infrastructure Europe data.

In the European carbon market, the benchmark contract was down 1.92 euros at 78.87 euros a tonne.

Read more: Russia warns it will stop selling oil to countries that impose price caps

Top Content Trending