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European natural gas prices edged higher, following seven sessions of declines, with Russian supplies through Ukraine expected to fall.
Orders dropped to about 68pc of the amount that Gazprom PJSC can send under its transit contract. The Russian company reiterated that flows were in line with requests from customers. Supplies through another pipeline, the Nord Stream, were near full capacity, data showed.
While Russian shipments haven’t yet been affected by the war in Ukraine, even rising above pre-invasion levels on some days, they have been under intense scrutiny for months. European near-term gas prices currently reflect a 20-40pc premium because of a risk of disruptions, according to Morgan Stanley’s Europe gas strategist Martijn Rats.
The threat of supply cuts, and attempts to isolate President Vladimir Putin’s administration for the war in Ukraine, have sent European nations scouring the world for other supplies. Italy on Monday agreed to boost imports from Algeria to reduce its dependence on Russia, which currently provides about 40pc of its demand.
The search for alternatives is also spurring a global rush for liquefied natural gas. TotalEnergies SE and its partners are planning to expand their export facility in Louisiana and send more LNG to Europe. The continent will boost worldwide demand for the fuel faster than previously expected and keep prices elevated for several years, according to Morgan Stanley.
Dutch front-month gas futures were 2.8pc higher at €102.91 per megawatt-hour in Amsterdam. The UK equivalent contract gained 3.5pc to 220.51 pence (€2.64) a therm.
Prices have settled after swinging heavily in the weeks following the invasion of Ukraine.
