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 cent respectively.

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, Bentek noted.

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.