Pricewatch | 11 Apr 2023 | Gas Matters Today

European natural gas prices slid on Monday after a long Easter weekend, as the weather forecast for much of Europe shows more wind and warmer temperatures.

Ahead the Catholic Easter, there was a downwards correction on the European gas market, with the rises that came after the cold spell in Northern Europe now erased. Power generation from renewables is set to gain momentum in parts of Europe, with the UK Met Office issuing wind warnings for this week. On Sunday, wind generated 35% of British electricity, National Grid ESO reported.

Both NBP in the UK and TTF in the Netherlands saw a 0.8% fall to USD 12.64/MMBtu and USD 13.70/MMBtu, respectively. JKM  remained flat in the same period, at USD 12.63/MMBtu.

In its Summer Supply Outlook 2023, ENTSOG said that the European gas network is capable of reaching at least a 90% gas stock level in all underground gas storage facilities by the end of the upcoming summer.

It added: “Western-European countries such as Belgium, Spain, France, Portugal, and United Kingdom could reach 100% of their working gas volume by the end of September 2023.”

“Additional LNG supplies, above historically observed import levels, could allow to reach higher target for all storage facilities before the end of September 2023. However, the situation is not improving for Bulgaria, Hungary, Romania, and Serbia due to infrastructure limitations.”

In the US, Henry Hub bounced 8% to USD 2.17/MMBtu, as weather data showed cool weather returning to the ‘Lower 48’ US states in about a week’s time.

Front-month futures and indexes at last close with day-on-day changes (click to enlarge): Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights.