EUROPE GAS-Dutch prices rise on Nord Stream shutdown

Front-month Dutch gas, the European benchmark, was up 12.00 euros at 263.00 euros per megawatt hour (MWh) by 0936 GMT and the October contract rose by 3.00 euros to 272.00 euros/MWh. Russia has halted gas supplies via Nord Steam 1, Europe's key supply route, for a three-day maintenance outage, intensifying an economic battle between Moscow and Brussels and raising the prospects of recession and energy rationing in some of the region's richest countries.

Dutch wholesale gas prices rose on Wednesday on a full shutdown of Russian flows to Europe via the Nord Steam 1 pipeline, while UK contracts eased following a rise of flows from Norway. Front-month Dutch gas, the European benchmark, was up 12.00 euros at 263.00 euros per megawatt hour (MWh) by 0936 GMT and the October contract rose by 3.00 euros to 272.00 euros/MWh.

Russia has halted gas supplies via Nord Steam 1, Europe's key supply route, for a three-day maintenance outage, intensifying an economic battle between Moscow and Brussels and raising the prospects of recession and energy rationing in some of the region's richest countries. "Prompt contracts across European hubs remain prone to extreme volatility related to the Nord Stream outage," Refinitiv analysts said.

The start of maintenance work at Norway's Kårstø gas processing plant in September also lent some support to prices. Prices were still lower than the peak of last week, when front-month Dutch gas contract hit record high due to tight global market.

"With the summer heat leaving and autumn rains partially arriving, Europe's energy prices cooled from their peaks. We believe that markets excessively price energy supply risks and that the current surge should eventually ebb," said Norbert Rücker, analyst at Swiss private bank Julius Baer. The British day-ahead gas contract fell by 45.00 pence to 405.00 p/therm and contract for immediate delivery was 9.00 pence lower at 405.00 p/therm.

The UK system was over-supplied by around 15.6 million cubic metres (mcm), due to partial return of Troll production capacity in Norway. Norwegian gas nominations both to the UK and Europe jumped on Wednesday, compared to previous day.

UK wind power generation was stronger than lately and is expected to increase over the weekend, putting pressure on prices. Peak wind generation in Britain was seen around 6.4 gigawatts (GW) on Wednesday and 5.9 GW on Thursday, out of total metered capacity of nearly 20 GW, Elexon data showed.

In the European carbon market, the benchmark contract was down 1.16 euros at 79.65 euros a tonne.