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EUROPE GAS-Prices rangebound as supply rebounds

LONDON, May 29 - Dutch and British wholesale gas rates were rangebound on Wednesday early morning as maintenance outages in Norway reduced and supply rebounds.

The benchmark front-month agreement at the Dutch TTF center inched up by 0.21 euro to 33.76 euros per megawatt hour (MWh) by 0917 GMT, while the July contract edged up by 0.01 euro to 33.89 euros/MWh, according to LSEG data.

In the British market, the June contract was 0.08 pence greater at 80.85 pence per therm.

There isn't a clear instructions at the moment. Norwegian supply is healthier however demand isn't that strong, a gas trader stated.

Interruptions in Norway have actually eased since their peak and the outages prepared from June 4 ought to have only a negligible effect on rates, analysts at LSEG stated.

In Britain, wind power output is anticipated to increase to around 11 gigawatts (GW) on May 31 before falling back to normal levels. Solar generation is likewise increasing and could peak on June 1 and after that stay above regular levels till a minimum of June 11, LSEG data revealed.

Peak wind generation in Britain is anticipated at 9 GW on Wednesday and 13 GW on Thursday, out of total metered capacity of around 23 GW, Elexon data showed.

Greater renewables output typically decreases demand for gas for power plants.

In north-west Europe, a drop in wind speeds is anticipated to below regular up until June 1 and solar generation is affected by cloud cover and anticipated to be listed below typical levels until at least June 4.

While there have been issues over Russian pipeline circulations to Austria, maintenance in Norway and strong Asian LNG need, the storage situation stays extremely comfy, stated experts at ING.

European storage levels are more than 69% full, according to Gas Facilities Europe data. That is above the five-year average of 56%.

We still anticipate storage to be near to 100% full ahead of next winter. In the absence of any significant supply shocks, rates still have room to move lower, ING experts added.

In the European carbon market, the benchmark contract edged up by 0.09 euro to 74.67 euros per metric ton.