Prompt prices on the Continental European gas markets slipped lower on Tuesday in rangebound trading, market sources said, while the forward curve rebounded as oil prices advanced following pipeline attacks in Yemen.
Day-ahead gas contracts on the Dutch TTF hub was trading down 5 euro cent at Eur25.75/MWh by midday, after changing hands within a tight range of between Eur25.65/MWh and Eur25.80/MWh in the morning session.
Similarly, the NetConnect day-ahead contract was last heard trading at Eur25.75/MWh, down 10 euro cent on the day, while gas for next day delivery on the German GASPOOL hub was pegged at Eur25.60/MWh, down 15 euro cent from Monday's close.
The market was "more bearish than bullish" despite the delayed startup in Norway and testing in Karsto, which has reduced gas flows into the continent, as the "market doesn't really feel tight," one trader commented.
Gassco's website showed that Norway's Karsto processing plant was shut down for testing on Tuesday and is scheduled to start up early Wednesday, which resulted lower gas flows into the Netherlands and Germany. Also, the Kollsnes plant remains partially closed till Wednesday, impacting around 30 million cubic meters of gas.
Despite the drop in gas into the Continent, flows into the UK was strong with the Norway-UK Langeled pipeline sending around 63 million cu m of gas into the UK.
Gas into Dornum receiving terminal in Germany from Norway stood at zero on Tuesday, according to operator Gassco's website, while flows into Emden EMS and Emden NGT were approximately 73 million cu m.
Meanwhile, prices for the forward gas contracts bounced back by midday Tuesday. Crude prices regained momentum on fresh supply concerns after an attack on Yemeni gas pipeline. November ICE Brent crude futures were up 56 cents at $110.38/barrel at 0900 GMT.
On the gas curve, the October contract on the TTF rose 15 euro cent on the day to reach Eur25.45/MWh, while the NetConnect front-month gas was trading 20 euro cent higher at Eur25.60/MWh.
The TTF year-ahead gas changed hands at Eur26.70/MWh, up 15 euro cent on the day.
