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EUROPE GAS-Prices steady but low storage, weather could lend support

ReutersMar 28, 2025 9:24 AM

- Dutch and British wholesale gas prices were mostly steady on Friday morning amid currently mild weather, although a cooler outlook from next week and the need to refill storages over the coming months should continue to lend support.

The Dutch front-month contract TRNLTTFMc1 was up 0.10 euro at 41.10 euros per megawatt hour (MWh), or $12.98/mmBtu, by 0914GMT, LSEG data showed.

The Dutch day-ahead contract TRNLTTFD1 was down 0.50 euro at 40.50 euros/MWh.

The British day-ahead contract TRGBNBBD1 inched up by 0.02 pence to 98.00 p/therm, while the weekend contract was up 0.45 pence at 97.25 p/therm.

Temperatures are forecast milder than normal early next week but then expected to drop to around or below normal, LSEG data showed.

At the same time, gas send-out from liquefied natural gas (LNG) terminals in Belgium and France was below expectations, LSEG analyst Ulrich Weber said in a morning report.

"Overall, this has our two-week balance flipping from net injections of 4 terawatt hours (TWh) to withdrawals of 1.7 TWh, so certainly a bullish change," he added.

Meanwhile, both Russia and Ukraine say the other party continues to attack energy infrastructures, including the gas hub of Sudzha, despite pledges for a 30-day ceasefire on such targets.

EU gas storage inventories were last seen 33.6% full, according to data from Gas Infrastructure Europe.

"Storage levels are likely to fall below 30% by April, significantly below historical levels," Daniel Hynes, senior commodities strategist at ANZ said in a note.

Restocking Europe's stores of natural gas will be a challenge given there is still little prospect of a return of Russian pipeline gas, which increase reliance on the LNG market, he added.

In the European carbon market, the benchmark contract CFI2Zc1 edged up by 0.39 euro to 68.93 euros a metric ton.

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