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Prices close higher as Russia attacks Ukrain's energy infrastructure



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Updates throughout

LONDON, Sept 17 (Reuters) -Dutch and British wholesale gas prices closed higheron Tuesday amid supply concerns as Russia fired missiles at energy infrastructure in the north-east Ukrainian city of Sumy.

The benchmark front-month contract TRNLTTFMc1 at the Dutch TTF hub was 1.17 euro higher at 35.37 euros per megawatt hour (MWH), or $11.81 mmBtu, by the market close at 1600 GMT, LSEG data showed.

On Monday, the benchmark TTF contract hit its lowest level since late July before rebounding slightly on Tuesday morning.

Russia fired missiles at energy infrastructure in the northeast Ukrainian city of Sumy on Tuesday hours after an overnight drone strike on the region, reducing power in some areas and forcing authorities to use back-up power systems.

The Sumy region borders Russia's Kursk region, where Ukrainian forces launched a major cross-border incursion on Aug. 6 and where the last remaining gas transit route from Russia to Ukraine is located.

Ukraine's energy ministry said Russia's attacks had caused a fire at a power substation and cut power to more than 281,000 consumers. Power was later partially restored, it said.

A gas trader said the attacks raised concerns again about the security of gas transit in the region.

European gas storage was last seen at 93.4% full, Gas Infrastructure Europe (GIE) data showed.

Norwegian gas flows are set to rise sharply from Friday, with the end of maintenance at the Kaarstoe and Kollsnes processing plants. NSEA/AM

In the British market, the day-ahead contract TRGBNBPD1 closed 1.95 pence higher at 83.25 p/therm.

In the European carbon market, the benchmark contract CFI2Zc1 was 0.15 euro higher at 64.36 euros per metric ton.


Norwegian gas infrastructure maintenance Norwegian gas infrastructure maintenance https://reut.rs/4fO4kxi

EXPLAINER-Is it the end for Russian gas supplies to Europe via Ukraine? nL8N3JZ0H0

EXPLAINER-What happens if Russian gas transit via Ukraine stops? nL8N3JV0SH


Reporting by Nora Buli in Oslo and Marwa Rashad in London; editing by Nina Chestney

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