British and Dutch gas prices rose on Tuesday morning on the expectation of further cuts in gas flows from Russia via the Nord Stream 1 pipeline from Wednesday.

Russian gas exporter Gazprom said on Monday it is halting one more turbine on Nord Stream 1 for maintenance from July 27 which will cut capacity to just 20% or 33 million cubic metres (mcm) of gas per day.

The front-month Dutch gas contract was up 9.5 euros to 186.25 euros per megawatt hour (MWh) by 0903 GMT, while the Dutch day-ahead contract rose 17.18 euros to 185.75 euros MWh.

The British day-ahead contract rose by 48 pence to 305 pence per therm.

“The key question now is how long will this reduction to just 20% of the pipe’s capacity actually last,” said Tom Marzec-Manser, head of gas analytics at ICIS.

“A protracted period …will likely limit Europe’s ability to inject adequate volumes of gas into storage, which could have consequences on winter supply. European governments will further need to incentivise demand reductions, especially from the industrial sector,” he said.

Preparing for potential Russian supply cuts, the European Commission proposed emergency rules last week that would require each member country to cut gas use by 15% from August to March 2023. The target would be voluntary, but the Commission could make it binding in a supply emergency.

Spain on Tuesday said it expects an agreement will be reached on curbing gas use by less than 15% on a voluntary basis.

Russian gas flows to Europe via Nord Stream stood at 27,749,860 kilowatt hours an hour (kWh/h) for 0800-0900 CET, down from levels above 29,000,000 kWh/h over most of the previous day.

In the European carbon market, the benchmark contract rose by 0.61 euros to 76.98 euros a tonne.

(Reporting by Susanna Twidale; editing by Jason Neely)