Dutch and British wholesale gas prices rose in early trading on Tuesday as cooler, less windy weather and outages in Norway tightened the short-term market, while the need to refill gas storages continues to provide wider price support.

The benchmark Dutch front-month contract (TRNLTTFMc1) was up by 1.37 euro at 34.07 euros per megawatt hour (MWh), or $/11.32 mmBtu, at 0841 GMT, its highest level since April 28, according to LSEG data.

The British equivalent (TRGBNBPMc1) was up 2.45 pence at 81.65 pence per therm, while the day-ahead contract (TRGBNBPD1) jumped 3.40 pence to 82.80 p/therm.

Prices are up, reflecting a few colder days ahead and still low wind power generation, a trader said.

Peak wind power generation in Britain is set to rise from 3.7 gigawatts (GW) on Tuesday to 4.1 GW on Wednesday, according to Elexon data.

An unplanned outage at Norway’s Dvalin field, curbing 7.6 million cubic metres (mcm) of gas per day, is tightening supplies to Britain, analysts at Northern Gas and Power said.

Nominations of Norwegian gas flows to Britain were down 35 mcm/day on Tuesday.

The need to refill European storage sites also continues to support prices, analysts at Mind Energy, formerly know as Energi Danmark, said in a morning note.

While injection rates were increasing in April, EU storages are now 41% full, helped by inflows of liquefied natural gas (LNG) but the latter is expected to be lower in May and June, they added.

Meanwhile, the European Commission will in June propose a ban on gas imports under new and existing spot contracts by the end of 2025 and remaining gas and LNG imports by 2027, according to a draft document of its plans for phasing out Russian energy.

In the European carbon market, the benchmark contract (CFI2Zc1) rose by 1.33 euro to 68.80 euros per metric ton.

Source: Reuters