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Europe gas supply dangers alleviate as crucial Norway pipeline due back Friday

An interruption affecting Norway's. gas exports to Britain that sent out costs skyrocketing on Monday will. likely be repaired by Friday, easing supply crunch issues but. still serving as a fresh pointer of Europe's reliance on. Norwegian gas.

Europe's benchmark gas price, the Dutch front-month agreement. , alleviated on the news that the repair work would be restricted. in time, shedding 4% to 34.93 euros/MWh by 0925 GMT.

Monday's blackout had driven up European gas costs on Monday. to a peak of 38.56 euros - their greatest level considering that December. Gassco associated it to a fracture in a two-inch pipeline onboard. Equinor's overseas Sleipner Riser platform.

The interruption drove up rates in the United States and Asia. too, on issues it could tighten supply at a time of concerns. over staying Russian volumes and an Asian heatwave increasing. competition for liquefied gas (LNG).

The United States is a primary exporter of LNG and supply. blackouts in other places increases demand for U.S. exports and in turn. lifts domestic gas costs.

Norway in 2022 surpassed Russia as Europe's most significant gas. provider after Moscow's intrusion of Ukraine, making any failures. at Norwegian fields a possible trigger for greater prices.

Norway in 2022 provided 26% of natural gas consumed in. Britain and the European Union, making it the continent's. largest provider, according to the Norwegian Offshore. Directorate, an industry regulator.

The blackouts as soon as again highlight the dangers on the European. gas market, which is still extremely based on person. producer countries, Commerzbank's head of commodity research. Thu Lan Nguyen said in a note on Tuesday.

REPAIRS

Based upon what we have actually heard from the field operator, this. is the repair time we believe it will require to repair the issue,. Alfred Hansen, head of system operations at Gassco, informed . on Tuesday, following a meeting with Equinor.

Repairs could take longer or also less time, however were not. expected to take weeks, he added.

Gassco will remain in regular contact with Equinor throughout. the repair duration and upgrade outage timings on its openness. site to reflect the latest price quotes, Hansen stated.

Equinor did not instantly respond to a request for. comment. The company has actually previously referred concerns on the. blackout to Gassco.

Sleipner Riser is a connection point in the North Sea for. the Langeled North and Langeled South pipelines linking the. Nyhamna plant on Norway's west coast to the Easington terminal. in northeast England.

Norwegian gas supply nominations increased partially to 264. million cubic metres (mcm) per day on Tuesday, from 256 mcm/day. chosen on Monday, according to Gassco information however were still. well below the 300 mcm or more each day normally scheduled.

Nyhamna is able to process up to 79.8 mcm daily, while. Britain's Easington terminal has a capacity of 72.50 mcm/day.

(source: Reuters)