EURO GAS: Prices soften on strong flows, falling oil
London (Platts)--6Feb2013/848 am EST/1348 GMT
German and Dutch gas prices were stable to lower during Wednesday
morning trading, on the back of piped imports meeting rising demand ahead of
colder temperatures forecast for the weekend and falling oil.
At 1200 GMT, the Dutch TTF day-ahead contract was seen 10 euro cent
lower than Tuesday's assessment at Eur25.85/MWh, while the February contract
was also down by 10 euro cent to Eur25.70/MWh.
On the German NetConnect and GASPOOL hubs, day-ahead prices were pegged
flat to each other at Eur26.25/MWh, having shed 5 euro cent and gained 5 euro
Data by operator Gassco showed that Norwegian flows into the Dutch and
German systems through the Dornum and Emden beach terminals in northern
Germany were, at midday UK time, stable at 111 million cubic meters.
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In addition, according to Platts unit Bentek Energy, higher demand
resulting from the onset of colder temperatures later in the week led to a
rise by 13 million cu m in Russian flows into Germany through the Nord Stream
pipeline on Tuesday, which totaled 46 million cu m.
Similar flows were anticipated through Nord Stream on Wednesday, while
Russian exports through the Brotherhood and Yamal pipelines into Western
Europe were stable since Monday at 117 million cu m and 80 million cu m,
According to forecaster CustomWeather, temperatures across Germany and
the Benelux region should remain around seasonal averages until Friday, with
Berlin and Munich currently at 3/-3 degrees Celsius, Hamburg at 5/0 C and
Amsterdam at 6/0 C.
However, over the weekend temperatures will drift lower, with a forecast
of -1/-7 C for Berlin, -3/-9 C for Munich and 2/-4 C for Amsterdam, which
should raise demand further.
Later dated TTF contracts edged lower, as March Brent crude was down 26
cents to $116.26/barrel.
The Summer 13 contract was down by 10 euro cent to Eur25.45/MWh, while
gas for delivery in 2014 was trading at Eur26.45/MWh, down by 5 euro cent.