Rising supply from Norway and wind power push Dutch gas prices lower

Dutch wholesale gas prices retreated on Monday morning as supply from Norway rose and wind power output rebounded, curbing demand for gas from power stations.

The benchmark Dutch front-month contract at the TTF hub was down €0.73 at €33.65 per megawatt hour (MWh) or $11.48/mmBtu, by 08:20 GMT, LSEG data showed.

The Dutch day-ahead contract was down €0.68 at €33.15/MWh. The British day-ahead contract was was unchanged at 79.75p at p/therm.

“On the supply side, some increase in Norwegian flows is expected as Troll (gas field) production is restored following the completion of maintenance scheduled through tomorrow,” LSEG analyst Dzmitry Dauhalevich said in a daily research note.

Total Norwegian exports are nominated 12 million cubic metres/day (mcm/d) higher at 321 mcm/d compared to Friday, LSEG data showed as maintenance eased.

In Britain, supply will also be boosted by the arrival of the Tessala liquefied natural gas tanker to the Isle of Grain, scheduled for Monday.

Expectations of stronger wind power output have also curbed demand for gas in Europe.

“In Germany, wind power generation is expected to remain elevated for the next two days before declining toward the end of the week,” analysts at Engie EnergyScan said in a daily market note.

(Reporting by Susanna Twidale; editing by Nina Chestney)