EUROPE GAS-Prices calm as Norwegian maintenance eases

LONDON, May 22 – Dutch and British wholesale gas prices were little changed on Tuesday morning as an easing in maintenance led to increased flows from Norway.

The benchmark front-month contract at the Dutch TTF hub inched 0.08 euro higher to 33 euros per megawatt hour (MWh) by 0839 GMT, according to LSEG data.

In the British market, the day-ahead contract was 0.25 pence lower at 78.50 p/therm.

“On the positive side, some of the Norwegian assets are back online which has increased the output considerably compared to yesterday,” analysts at Auxilione said in a daily research note.

Flows began ramping up from Norway’s Kollsnes processing plant with total Norwegian exports to the UK up by 24 million cubic metres a day (mcm/d) at 60 mcm/d LSEG data showed.

Countries including Belgium, Germany and France have asked for European Commission for assessments on whether a ban on LNG transshipments at European ports will hit the Russian economy more than the EU’s, they said on Tuesday.

Although piped exports of Russian gas to Europe have slumped since the war in Ukraine, exports of LNG to the bloc have increased, Reuters analysis has shown.

LSEG analyst Tomasz Marcin Kowalski said the market was also watching news that the lead contractor, who is building a Texas liquefied natural gas (LNG) plant for QatarEnergy and Exxon Mobil, filed for Chapter 11 bankruptcy protection on Tuesday, citing challenges at the project.

“Market participants may see this as a potential risk for delaying the ongoing LNG export project in Texas, as Europe is much more reliant on LNG supplies,” he said.

In the European carbon market, the benchmark contract was 0.02 euro lower at 76.23 euros per metric ton. (Reporting By Susanna Twidale; Editing by Janane Venkatraman )

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