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EUROPE GAS-Prices dip on LNG supply boost, warmer temperatures

Benchmark European and British wholesale gas prices fell on Thursday morning as expectations of the arrival of several liquefied natural (LNG) gas tankers and warmer weather over the next few days helped to offset low exports from Russia.

The British gas contract for day-ahead delivery TRGBNBPD1 was down 52 pence at 3.52 pounds per therm by 1025 GMT.

The British weekend contract TRGBNBPWE was down 49 pence at 3.76 pounds/therm

The benchmark Dutch front-month contract TRNLTTFMc1 was down 26.5 euros at 139 euros per megawatt hour (MWh).

Traders said a correction had been expected after record highs hit earlier in the week and that a raft of new LNG tankers scheduled to arrive in Europe over the next few weeks and forecasts for warmer weather had provided respite to prices.

Several LNG shipments have been diverted to Europe from Asia, sources told Reuters, while three tankers also declared Britain as their destination on Thursday morning.

“The latest EC (temperature forecast) runs consistently adjusted towards warmer weather with no cold spell on the horizon anymore is a strong factor on the bearish side,” analysts at Refinitiv said in a daily research note.

“However concerns around Russian supply continue to be supportive to the prices,” the analysts said.

The Yamal-Europe pipeline that sends Russian gas to Western Europe was operating in reverse for a third straight day on Thursday, data from German network operator Cascade showed, with flows directed away from Germany to Poland.

Russian gas giant Gazprom has also not booked gas transit capacity for exports via the Yamal-Europe pipeline for Dec. 23, auction results showed on Thursday.

The European benchmark December 2022 emission allowance (EUA) contract CFI2Zc1 was down 0.64 euros at 76.25 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Kirsten Donovan)

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