European gas prices dip on strong LNG supply, improved nuclear power output
LONDON, Oct 10 (Reuters) - British and Dutch wholesale gas prices fell on Monday morning due to strong high imports of liquefied natural gas (LNG) and improved output from nuclear powers in France helped curb demand.
The Dutch November gas price was down 4.00 euros at 515.00 euros per megawatt hour (MWh) by 0905 GMT, while the day-ahead contract was down 0.75 euro at 104.25 euros/MWh.
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The British day-ahead contract fell by 7.00 pence to 173.00 pence per therm.
Gas supply from Britain’s LNG terminals was forecast at 76 million cubic metres (mcm)/day on Monday, up from around 60 mcm the previous day, Refinitiv Eikon data showed.
Nine LNG tankers are currently scheduled to arrive in Britain by the end of the month.
“The weakness in Asia JKM (LNG) prices… guarantees LNG supply to Europe will remain strong in the near future,” analysts at Engie EnergyScan said.
Asian spot LNG prices fell last week on healthy inventory levels and as mild weather eased demand in the region.
The return to service of some French nuclear plants was expected to help curb gas demand for power generation in Europe.
The Paluel 1, Paluel 3, Belleville 1, Bugey 2 and Nogent 1 reactors, accounting for more than 6 gigawatts of capacity have all returned to service since Friday, French grid data showed.
“French nuclear capacity rising back above 30 GW can ease some power sector demand while renewable production will increase from the weekend and into next week,” analysts at Refinitiv said in a daily research note.
A meeting of EU leaders on Friday saw no firm proposals on how to cap gas prices, which has been put forward by some countries as a way to curb a surge in energy prices.
Discussions are now expected to continue at the next EU council meeting on October 20-21.
Flows of gas from Russia to Europe via Ukraine were steady on Monday while eastward gas flows on the Yamal-Europe pipeline to Poland from Germany remained at zero, pipeline operator data showed.
In the European carbon market, the benchmark contract fell by 2.41 euro to 67.44 euros a tonne.
(Reporting by Susanna Twidale; editing by Nina Chestney)