European natural gas prices rose by around 5% on Tuesday, with the August contract climbing to €46.11 per megawatt-hour amid expectations that an upcoming heatwave will boost electricity demand.
At the Netherlands-based Title Transfer Facility (TTF), Europe’s most liquid gas trading hub, the August contract rose about 5% to €46.11 per megawatt-hour from the previous session's close of €44.13.
Analysts say the rally is driven by expectations that a heatwave forecast to affect Northwestern Europe and Italy in the coming weeks will increase electricity consumption and natural gas demand.
On the supply side, lower gas flows from Norway, Europe's largest pipeline gas supplier, have also supported prices. Market participants point to extended maintenance works at the Nyhamna gas processing plant and the Troll gas field, which have heightened concerns over supply security.
Meanwhile, data from Gas Infrastructure Europe (GIE) show that European underground gas storage facilities are 43.1% full, below the 51.4% level recorded during the same period last year. Lower storage levels compared with a year earlier are also contributing to upward pressure on prices.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
