Gas contracts on European prompt markets extended last week's losses Monday on reduced demand ahead of the summer season when the market switches to injecting gas into storage facilities, which are at healthy levels.
Day-ahead gas price on the Netherlands TTF trading hub declined to Eur20.50/MWh at midday Monday, after trading below Friday's close of Eur20.80/MWh in the first half of the session.
In Germany, the day-ahead contracts on NetConnect Germany and GASPOOL were trading at the same price of Eur21.00/MWh, shedding 10 and 35 euro cent, respectively, from Friday's close.
Following a mild winter, when demand for heating remained depressed, volumes needed for storage injection also fell for the summer injection period as most regions were set to enter April with storage sites half full, data showed.
Platts unit Bentek Energy report said German gas demand for storage injections stood at 4 million cubic meters of gas/day, while imports into Germany also were nominated lower, due to low demand, at only 297 million cu m on Monday, down 18% from Friday.
In the Netherlands, demand remained down at 241 million cu m, lower than levels seen last week, Bentek said.
Contracts on the forward curve also stayed bearish, in line with the prompt prices.
The TTF April contract, on the last day of trading before delivery, eased further lower to Eur20.80/MWh, down 80 euro cent.
Further out, the TTF Cal 2015 gas price fell to Eur24.10/MWh, down from Friday's close of Eur24.45/MWh at midday trade.
