EUROPE GAS-Prices inch up on colder weather forecasts

Reuters
01-15

LONDON, Jan 15 (Reuters) - Dutch and British wholesale gas prices were slightly higher on Wednesday morning on expectations of lower temperatures and less wind output.

The benchmark front-month contract at the Dutch TTF hub

inched up by 0.28 euro to 47.58 euros per megawatt hour (MWh) by 0923 GMT, according to LSEG data.

The Dutch day-ahead contract was 0.70 euro higher at 48.10 euros/MWh.

In Britain, the day-ahead contract was 0.95 pence higher at 121.25 pence per therm.

European prices fell in the previous session amid profit taking and lower consumption.

"Prices are a little higher as the weather is expected to turn (colder)," a gas trader said.

Temperature forecasts for north-west Europe are expected to peak today but then expected to be lower than previous forecasts at the weekend. Temperatures are expected to fall back below normal levels from Jan 17-22, LSEG data showed.

Wind generation also remains weak and is not forecast to be back above normal levels until at least Jan. 24, said Wayne Bryan, head of European gas research at LSEG.

On the supply side, liquefied natural gas $(LNG)$ and Norwegian flows are stable.

This week, 10 European Union countries called for the 27-nation bloc to ban imports of pipeline gas and LNG from Russia, a document seen by Reuters showed, as Europe prepares its 16th package of sanctions targeting Russia's economy.

In the European carbon market , the benchmark contract was up 1.02 euro at 77.98 euros per metric ton.

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(Reporting by Nina Chestney)

((nina.chestney@thomsonreuters.com; nina.chestney.thomsonreuters.com@reuters.net))

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