British wholesale gas prices rose on Wednesday morning on a German court ruling that the Nord Stream 2 (NS2) link with Russia must comply with EU rules requiring the owners of pipelines to be different from the suppliers of the gas that flows through them.
The British September contract was up 3.70 pence at 114.70 p/therm by 0915 GMT.
The British day-ahead gas price was up 1.25 p at 114.25 p/therm.
The German court ruling on Wednesday means that the company transporting the gas must auction its capacity to third parties. This could delay the start of Nord Stream 2 deliveries but will not stop completion of the pipeline.
Traders said further uncertainty over the start of commercial flows through the pipeline was bullish for European gas prices.
Europe is already experiencing low gas stocks and struggling to attract deliveries of liquefied natural gas amid strong prices in Asia.
Lower imports from Norway and UK continental shelf (UKCS) supply outages also lifted prompt prices.
Imports to Britain from Norway through the Langeled pipeline were expected at 40 million cubic metres (mcm), down 10 mcm from the previous day due to continued outages in Norway.
“Ongoing NS2 uncertainty shall continue to support prices. Also, (there is) additional bullish risk from unplanned restriction from UKCS domestic production and lower than expected Troll (Norwegian field) capacity,” analysts at Refinitiv said in a daily research note.
The September gas price at the Dutch TTF hub was up 0.05 euro at 45.63 per megawatt hour.
The benchmark Dec-21 EU carbon contract was up 0.08 euro at 56.72 euros per tonne.
The benchmark Dec-21 British carbon contract was up 0.16 pounds at 48.95 pounds per tonne.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)