LONDON, Aug 1 (Reuters) - British and Dutch wholesale gas
prices inched up on Friday, supported by heavy maintenance at UK
natural gas production facilities and continued uncertainty
related to Russian supplies to Europe.
The British day-ahead contract was up by 21
pence at 285 pence per therm at 0946 GMT, while the contract for
immediate delivery was 14 pence higher at 290
The front-month Dutch gas contract was up 7.00
euros at 198.50 euros per megawatt hour (MWh), while the
contract for next-day delivery rose by 7.05 euros to
Natural gas production on the UK Continental Shelf (UKCS) is
expected to drop from Monday by 23 million cubic metres (mcm)
per day to 79 mcm, according to Refinitiv, due to multiple
As a result, the UK system was more than 4 mcm undersupplied
on Monday, according to the National Grid website.
Russian gas flows to Europe via Nord Stream 1 slightly
increased, but uncertainty around the supplies kept the market
Russian gas producer Gazprom has reduced the
capacity of Nord Stream 1, the major delivery route to Europe
for Russian gas, to a fifth of its total capacity, citing
However, the gas prices gains were capped due to arrivals of
multiple liquefied natural gas (LNG) cargoes to UK terminals,
and also an expectation of strong wind in coming days that could
reduce British demand for gas for electricity production,
Refinitiv analysts said.
UK peak wind power generation is forecast at around 11
gigawatts (GW) on Monday, rising to 15 GW on Tuesday, out of a
total metered capacity of 19.9 GW, Elexon data showed.
"News from Australia, that the pressure to lower the LNG
exports is building in order to supply the local market, is also
keeping gas prices from easing further," said Hans van Cleef,
senior energy economist at ABN AMRO.
In the European carbon market, the benchmark contract
rose by 0.86 euros to 79.41 euros a tonne.
(Reporting by Bozorgmehr Sharafedin; Editing by Jan Harvey)