LONDON - British and Dutch gas prices mostly rose on Monday morning on continued uncertainty about the prospect of Nord Stream 1 pipeline flows resuming to full capacity due to the delay of a serviced turbine.
The benchmark Dutch front-month gas contract rose by 3.27 euros to 164.02 euros per megawatt hour (MWh) by 1000 GMT, while the contract for September was 3.50 euros higher at 166.00 euros/MWh.
The British day-ahead contract was 5.00 pence higher at 260.00 pence per therm.
Flows through the Nord Stream 1 pipeline to Europe remain stable at 40% of capacity, following the end of scheduled maintenance last week.
The market is eyeing developments of the return of a repaired turbine and any signs that flows will increase once it is if fitted, a gas trader said.
"Our outlook is for prices to remain volatile and Nord Stream 1 concerns to remain high. Any updates regarding the repaired turbine will largely dictate price action once more," said Wayne Bryan, head of gas research at Refinitiv.
At the weekend, Russia's Kommersant newspaper reported that Siemens Energy handed over Canadian documentation to Gazprom on Sunday which would allow the transport of turbines for the Nord Stream 1 gas pipeline.
Kommersant, without citing sources, said that due to a lack of necessary papers, the turbine, which has been on its way from Canada back to Russia, missed a ferry from Germany to Helsinki on Saturday.
It said the turbine may be delivered in the next few days if Siemens Energy and Gazprom exchange the necessary documentation.
The repaired turbine will be installed at a compressor station of the pipeline once it is returned and natural gas will then be supplied in "corresponding volumes", a Kremlin spokesman said on Monday.
He said that there was more Nord Stream 1 equipment that needed repairing and Siemens Energy, the company which is servicing the facilities, was aware of that.
He also said that Moscow was not interested in a complete stoppage of Russian gas supplies to Europe.
Meanwhile, Norwegian supply remains robust but liquefied natural gas (LNG) send-out has decreased in Britain, with only a few tankers scheduled for arrival.
On the demand side, wind output in northwest Europe is forecast to be above normal levels in the first half of this week before falling after that. Strong wind generation typically reduces demand for gas from power plants.
British wholesale gas for immediate delivery fell by 36.00 pence to 255.00 p/therm.
In the European carbon market, the benchmark contract rose by 1.80 euros to 78.10 euros a tonne.
(Reporting by Nina Chestney)