Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gas prices rose in the Netherlands and Britain on Monday morning, October 30, driven by news that Egyptian gas imports would stop, which will consequently affect its exports of liquefied natural gas. Cold weather and unscheduled outages in Norway also supported prices.
The Dutch November benchmark natural gas contract rose 2.50 euros to 53.40 euros per megawatt hour by 09:45 GMT. December contracts increased by 2.45 euros to 56.15 euros.
In Britain, the November contract rose 6.50 pence to 133.00 pence per thermal unit.
One of the dealers said, “I think the reason is due to the news coming from Egypt.”
Egypt said over the weekend that its imports of natural gas had fallen to zero from 800 million cubic feet per day.
This month, Chevron also closed the Tamar gas field in light of the escalation of the conflict between Israel and Hamas and stopped exports via an undersea pipeline to Egypt.
Egypt was exporting its surplus quantities in the form of liquefied natural gas, but that stopped in light of the decline in supplies and the increase in domestic consumption.
The dealer pointed out that although the quantities of liquefied natural gas imported from Egypt to Europe are not usually high, the step highlights the increasing geopolitical risks.
Gas prices also increased in the near term due to forecasts of cold weather and unscheduled outages at Norwegian processing plants.
