EUROPE GAS-Prices Soar As Flows From Russia Through Nord Stream 1 Drop

EUROPE GAS-Prices Soar As Flows From Russia Through Nord Stream 1 Drop

EUROPE GAS-Prices Soar As Flows From Russia Through Nord Stream 1 Drop

June 16 (Reuters) - Dutch and British wholesale gas rose on Thursday as gas flows from Russia to Europe via Nord Stream 1 fell after Gazprom curbed the pipeline´s capacity.

The Dutch front-month contract was up 15.00 euros at 129.00 euros per megawatt hour (MWh) by 0843 GMT, having earlier touched 132.00 euros MWh, its highest level since the beginning of April.

The day-ahead contract was up 11.70 euros at 128.25 euros/MWh.

Gazprom said flows through the Nord Stream 1 pipeline would be curbed to up to 67 million cubic metres (mcm) a day from 1.30 am Moscow time on Thursday (2230 GMT on Wednesday) due to issues with Siemens made equipment at the Portovaya compressor station near St Petersburg.

The cut means the pipeline is now running at around 40% of its full capacity.

"Gazprom´s decision to further cut capacity on Nord Stream1 will have seismic ramifications for the European and global natgas market. With flows dropping to 67 mcm/d it will be increasingly hard for storages to be refilled ahead of the winter," ICIS analyst Tom Marsec-Manser said on Twitter.

Gas flows via the Nord Stream 1 into Germany fell to 29,033,806 kilowatt hours per hour (kWh/h), data from the pipeline operator showed on Thursday, down from levels over 44,000,000 kWh/h on Wednesday.

Several companies such as Italy´s Eni, Germany´s Uniper and Austria´s OMV have reported lower gas supply from Russia since the capacity cut.

The cut in Russian supply also comes after Freeport LNG, one of the largest U.S.

operators of liquefied natural gas export terminals, said its operations would remain offline until September with only partial operation through year end.

The British day-ahead contract was up 39.00 pence to 264.00 p per therm, kooora goal while the British weekend contract rose by 20.00 p to 235.00 p/therm.

In the European carbon market, the benchmark contract rose by 0.14 euros to 86.36 euros a tonne.

(Reporting By Susanna Twidale; Editing by Nina Chestney)

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