Russian gas to flow to Europe from Thursday, driving prices down

The front-month TTF gas contract traded at 77.00 euros/MWh at 1445 GMT. Traders, however, said they were cautious flows would indeed resume, as renominations can be changed until the start of trading on Thursday.

Russian gas should flow to Europe again through the Yamal-Europe pipeline from Thursday, as shippers have begun asking for the right to transport gas westwards, data on Gascade's website showed on Wednesday.

Entry renominations, or requests to transport gas into Germany from the Mallnow border, stood at 13,521,200 KWh/h for Thursday, starting at 0500 GMT, Gascade data showed, up from zero. Russian gas has not flowed westwards into Germany via the pipeline since Saturday. Instead, supplies were sent east in a reversal that sent benchmark gas futures soaring.

News that the flows would resume cooled prices, with the European benchmarket dropping to as low as 75 euros per megawatt (MWh) from 78.75 euros per megawatt before the renominations were published. The front-month TTF gas contract traded at 77.00 euros/MWh at 1445 GMT.

Traders, however, said they were cautious flows would indeed resume, as renominations can be changed until the start of trading on Thursday.

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