HomeNewsNatural gas prices edge lower as Norwegian supply increases

Natural gas prices edge lower as Norwegian supply increases

9/27/2023

(Reuters) - Dutch and British wholesale gas prices fell on Wednesday morning as the end of maintenance at some Norwegian gas infrastructure boosted supply and as high gas storage levels weighed on the market.

The Dutch October contract fell by 1.15 euros to 38.50 euros per megawatt hour (MWh) by 0804 GMT, while the November contract was 0.15 euros lower at 43.15 euros/MWh, according to LSEG data.

In the British market, the day-ahead contract fell by 2.25 pence to 97.50 pence per therm while the October contract was down 1.08 pence at 99.00 p/therm.

“Our outlook is moderately bearish when looking at the improving supply outlook from Norway over the coming week with outage impact falling ahead of the start of October,” LSEG analyst Wayne Bryan said in a daily research note.

Piped Norwegian exports are nominated at 235 million cubic meters (mcm) on Wednesday, up 15 mcm from the previous day, according to LSEG data.

Mild weather for the time of year was also expected to dampen gas demand in Europe.

"The weather in Germany is mild and gas storage facilities in Europe are 95% full according to GIE (Gas Infrastructure Europe) which means at least that the heating season that officially begins next month will get off to the best possible start," analysts at Commerzbank said in a research note.

Supply from Russia to Europe via Ukraine was also stable on Wednesday morning.

Russia's Gazprom said it would send 42.4 mcm of gas to Europe via Ukraine on Wednesday, the same volume as on Tuesday.

In the European carbon market, the benchmark contract fell by 0.14 euro to 82.78 euros a tonne.

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