Free Trial

NATGAS: European Gas End of Day: Lack of Ukraine Deal Proving Decisive

NATGAS

Ukraine gas transit looks set to halt at the end of the year with no last minute deal in sight, proving the main upward driver for TTF this week.

  • TTF JAN 25 up 1.3% at 43.65€/MWh
  • TTF had its biggest daily move in a month on Thursday after the leaders of Russia and Ukraine both ruled out a deal renewal.
  • Reuters reports on Friday citing SOCAR officials said an Azerbaijani brokered deal to commence flows had also failed to make any progress despite being worked on for over a year.
  • The flows are set to halt in the peak winter season at a point when stocks are depleting at a faster than usual pace, leaving European stockpiles in a more precarious place.
  • Asian demand is also providing more competition for LNG cargoes which are proving more profitable to head east.
  • Germany abolished its controversial gas storage fee on Friday in a bid to support European energy security. Its removal had been delayed by Germany’s fractured political situation.
  • Trump threatened the European Union with tariffs if its member countries don’t buy more American oil and gas on Friday.
  • Hungary’s Orban confirms Thursday reports that the U.S. has halted sanctions on Gazprombank gas payments for 3 months, giving buyers more short term options.
204 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Ukraine gas transit looks set to halt at the end of the year with no last minute deal in sight, proving the main upward driver for TTF this week.

  • TTF JAN 25 up 1.3% at 43.65€/MWh
  • TTF had its biggest daily move in a month on Thursday after the leaders of Russia and Ukraine both ruled out a deal renewal.
  • Reuters reports on Friday citing SOCAR officials said an Azerbaijani brokered deal to commence flows had also failed to make any progress despite being worked on for over a year.
  • The flows are set to halt in the peak winter season at a point when stocks are depleting at a faster than usual pace, leaving European stockpiles in a more precarious place.
  • Asian demand is also providing more competition for LNG cargoes which are proving more profitable to head east.
  • Germany abolished its controversial gas storage fee on Friday in a bid to support European energy security. Its removal had been delayed by Germany’s fractured political situation.
  • Trump threatened the European Union with tariffs if its member countries don’t buy more American oil and gas on Friday.
  • Hungary’s Orban confirms Thursday reports that the U.S. has halted sanctions on Gazprombank gas payments for 3 months, giving buyers more short term options.