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German February imported BAFA natural gas price below German, Dutch spot

London (Platts)--19 Apr 2017 820 am EDT/1220 GMT


* BAFA Feb prices up 2.4% on month
* Prices up 15.7% on year
* Dutch, German spot, prompt above BAFA price


The average price of natural gas imported into Germany in February was Eur18.15/MWh, according to export control agency BAFA, below German NetConnect and GASPOOL and Dutch TTF February spot and front-month contracts for February delivery.

The BAFA price is the monthly average price of natural gas on the border, based on a formula including long-term contracts linked to oil, spot gas and other mechanisms.

The price of imported gas in January was up 2.4% from January and 15.7% higher year on year. In comparison, the price of imported gas in January was up 0.7% from December and up 10.1% year on year.

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Gas prices in February showed some strength month on month and year on year on cooler weather at the beginning of the month combined with low stocks.

S&P Global Platts assessed average day-ahead prices at Germany's GASPOOL and NCG in February at Eur19.569/MWh and Eur20.063/MWh, respectively, Eur1.42/MWh and Eur1.91/MWh above BAFA prices.

On the Dutch TTF hub, the contract in February was assessed at Eur19.586/MWh, Eur1.44/MWh above the BAFA price.

Looking at the month-ahead price in January for February delivery, the contracts at the three hubs were also above the BAFA price, at Eur19.333/MWh for GASPOOL, Eur19.837/MWh for NCG, and Eur19.794/MWh for TTF.

In February, BAFA was once again about the same level as Platts Northwest Europe Gas Contract Indicator for February, which was at Eur18.14/MWh. This indicator shows the theoretical value of an old-fashioned, oil-indexed long-term gas import contract.

The BAFA price was also above Platts Analytics' Eclipse Energy oil-indexed range (901) of Eur17.60/MWh in February. Platts Analytics oil-indexed range also includes some spot indexation and prices renegotiation.

But German and Dutch spot February and front-month contracts for February delivery were also above Platts Analytics' oil-indexed range.

The value of imported natural gas in January and February was Eur4 billion from Eur3.1 billion in the same period last year, BAFA said.

--Ornela Figurinaite, ornela.figurinaite@spglobal.com
--Lucie Roux, lucie.roux@spglobal.com
--Edited by Jonathan Fox, jonathan.fox@spglobal.com

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