EU Gas Jumps on LNG Import Concerns

European gas prices have jumped on concerns for LNG imports after news of a fire at the US Freeport LNG export terminal

• Front month TFT is now up 10.6% to 87.88€/MWh and NBP is up 32% to 171.5p/th.
• Europe is reliant on LNG for security of supply with nearly 50% of imports so far this year originating from US. Freeport LNG receives about 2bcf of gas per day which is approximately 16% of total US LNG export capacity. As Europe looks to move away from Russian energy supplies any disruption or delays to LNG supplies could impact on the ability to fill storage ahead of the winter.
• With the help of LNG storage has been filling quickly during spring with stock levels now recovered from 25.5% in mid-March to near normal for the time of year at 50.24%. New EU rules require European storage to be at 80% capacity by 1^st November.
• Norwegian flows are recovering after the maintenance yesterday, but the Heimdal gas field will be delayed for an extra day. Today’s nomination is for 255mcm/d up from 184mcm/d yesterday but still below the previous week average of approximately 320mcm/d.
• Flows from Russia are stable with transit via Ukraine at 41.9mcm/d and Nord stream nominated just slightly lower at 61.38GWh/h.