European Gas Finds Early Support on Friday

TTF front month finds early strength on Friday, returning back towards Thursday highs but remains well down from early July levels. Overall fundamentals remain stable with demand weak and stock levels robust.

• TTF AUG 24 up 1.8% at 32.35€/MWh
• Although a testing restart, the return of cargoes from Freeport in the U.S. this week has added a supply element for gas markets.
• US LNG exports are currently more profitable to Asia in September, October and November. The gas price spread between Asia and Europe is $1.90/MMBtu in August.
• Temperatures in NW Europe are forecast to rise from near normal over the weekend to above normal next week and maintain the warmth into the first week of August.
• European gas storage was 84% full on July 24 vs the 5-yr seasonal norm of 74% for this time of year according to GIE.
• Norwegian nominated flows to the UK and Northwest Europe terminals at 333.30 mcm/d vs 5-day moving avg 324.52 mcm/d according to Gassco.
• The maintenance schedule at Norway’s Visund was modified as the gas field ramps up according to Gassco. The bulk of works are set to end by July 31.
• Kpler data shows that Egypt’s EGAS received five LNG cargoes this month, with the sixth arriving this weekend on the Hellas Athina. Egyptian buying along with strong Indian demand is adding competition for LNG cargoes.