EUROPE GAS-Prices rise as market closely monitors Hurricane Beryl

EUROPE GAS-Prices rise as market closely monitors Hurricane Beryl

LONDON, July 8 (Reuters) – Dutch and British wholesale gas prices rose on Monday morning as the market closely monitors the impact of Hurricane Beryl on U.S. liquefied natural gas (LNG) facilities as it neared the Texas coast on Sunday, leading to the closure of some LNG facilities.

The benchmark front-month contract at the Dutch TTF hub was up 0.7 euros to 33.73 euros per megawatt hour (MWh), or $10.7/mmBtu, by 0914 GMT, LSEG data showed.

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The day-ahead contract was up 0.3 euros at 33.00 euros/MWh.

In the British market, the day-ahead contract was 0.75 pence higher at 78.5 pence per therm.

Hurricane Beryl, the earliest category 5 hurricane on record, has forced some energy facilities in Texas to shut or slow down operations.

Freeport LNG’s liquefaction trains 1, 2 and 3 and a pre-treatment facility were proactively shutdown. Plant operators later restarted them “as efficiently as possible to minimize flaring,” according to a filing with The Texas Commission on Environmental Quality.

“For the moment, no impact on LNG supply but the risk remains, which clearly does not encourage aggressive selling,” analysts at Engie EnergyScan said.

Meanwhile, temperatures are expected to dip later this week before returning to just above seasonal normal for the rest of the month in the UK and Europe, consultancy Auxilione said in a daily note.

In Britain, gas for power demand is dropping strongly on the day ahead, down 26 million cubic meters per day mcm/d due to a strong increase in wind generation.

Peak wind power generation in the UK is forecast at 4.1 gigawatts (GW) on Monday rising to 10.2 GW on Tuesday, Elexon data showed.

In the European carbon market, the benchmark contract rose by 0.88 euros to 71.24 euros a metric ton.

(Reporting by Marwa RashadEditing by Susanna Twidale)