Home / Oil & Energy / General Energy News / UK GAS-Prices ease ahead of Russian gas transit auction

UK GAS-Prices ease ahead of Russian gas transit auction

British and Dutch wholesale gas prices fell on Tuesday as the market awaited the outcome of an auction for additional transit capacity through Ukraine, which could increase Russian gas supplies.

The British day-ahead contract TRGBNBPD1 was down 0.75 pence at 54.25 pence per therm by 0825 GMT.

The Dutch TTF day-ahead contract TRNLTTFD1 inched down by 0.02 euros at 20.15 euros per megawatt hours.

The TTF May gas price TRNLTTFMc1 was 0.15 euro lower at 19.88 euros per megawatt hour.

The market was trading on expectations of additional capacity through Ukraine, said a trader.

The outcome could see sharp price moves in either direction and impact all contracts from the day-ahead and further out, but mostly the rest of the summer, he added.

The Ukrainian transmission system operator will offer 63.7 million cubic metres (mcm) per day, or around 669 gigawatt hours (GWh) per day, of interruptible capacity for May at Sudzha on the Russian-Ukrainian border, after all firm capacity for May has been booked, Refinitiv gas analysts said.

On the fundamentals side, UK local distribution zone (LDZ) consumption for Wednesday is forecast 13 mcm/d up amid colder temperatures for the second half of the week, the analysts said.

However, higher wind will lower gas-for-power demand by 6 mcm/d, they added.

Peak wind generation is forecast at 6.3 gigawatts (GW) on Tuesday and 7.2 GW on Wednesday, out of a total metered capacity of around 18 GW, National Grid data showed.

The system was over-supplied by around 8 mcm, with supply forecast at 218 mcm and flows at 226 mcm/day, National Grid data showed.

Refinitiv analysts said strong withdrawals from storage offset lower pipeline supplies from Norway and domestic UK production.

The benchmark Dec-21 EU carbon contract CFI2Zc1 was 0.40 euro down at 46.80 euros a tonne.
Source: Reuters (Reporting by Nora Buli in OSLO; editing by Nina Chestney)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping