Prices mixed as demand returns after Easter, LNG supply looms

British and Dutch wholesale gas prices were mixed with several scheduled cargos of LNG and strong Norwegian supply expected to meet a pick-up in demand following the Easter holiday.

In the British gas market, the day-ahead contract rose 55 pence to 165.00 p/therm, after plummeting on Thursday ahead of the Easter holiday when consumption fell.

Despite the sharp rise on Tuesday, the contract remained weaker than last week when it traded over 200 p/therm.

Analysts said the expectation of several LNG cargos could pressure prices this week.

"Fundamentals for the coming week remain soft, eight cargoes are scheduled to arrive at UK terminals before month-end, ensuring send out remains brisk," analysts at Refinitiv said in a daily research note.

Exports from Norway to Britain through the Langeled pipeline were expected at 73 MMm³  on Tuesday, up 8 MMm³ from the previous day.

The Dutch day-ahead contract fell 16.65 euros to 84.90 euros per megawatt hour (MWh).

The Dutch May contract rose 5.4 euros to 93.40 euros/MWh

Traders said the market remains nervous about Russia's decree made in March that foreign buyers pay for gas in roubles or else have their supplies cut, a move most European capitals rejected and which Germany said amounted to "blackmail".

The Kremlin said on Monday there was still time for so-called "unfriendly" countries to switch currency, with payment for delivery expected in May.

Russian gas deliveries to Europe through Ukraine dipped on Friday in line with customer requests, while flows to Germany through Nord Stream 1 were steady and flows increased eastbound into Poland from Germany through the Russia-EU Yamal pipeline.

In the European carbon market, the benchmark contract fell 0.04 euros to 79.93 euros a ton.

(Reporting By Susanna Twidale; Editing by Amy Caren Daniel)

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