Gas Mid-Day Summary: TTF Extends Losses Amid Strike Uncertainty

The TTF front month has pulled back amid uncertainty over industrial action at Chevron’s LNG sites but prices remained above levels seen late last week because of tighter supplies from Norway.

• TTF SEP 23 down -5.8% at 36.2€/MWh
• TTF WIN 23 down -4.9% at 49.66€/MWh
• The front month pulled back to an intra-day low of €35.83/MWh.
• Australian Strikes: Chevron's two LNG production facilities in Australia - Gorgon and Wheatstone – that account for more than 5% of global LNG capacity, could face daily work stoppages of up to 10 hours next week after unions on Tuesday threatened labour action if wages and conditions are not met. Workers at the two facilities plan to stop work for seven hours in two blocks on September 7, escalating to 10 hours on September 8 and 11 hours on September 9 according to Reuters reports. A smaller stoppage of three hours is planned at the Wheatstone production platform from September 7, it reported with planned action out till the 14th of September.
• Norwegian nominated flows to the UK and Northwest Europe terminals fell to 181.3mcm/d today, as maintenance at the Troll field and Kollsnes facilities ramped up last weekend. Flows stood just above 300mcm/d in early last week. Supply disruptions from Norway will further increase in the coming week and reach up to 176mcm/d on 6 September of unavailable capacity.
• European gas storage was 93% full on Aug. 27 vs the 5-yr seasonal norm of 80% for this time of year, GIE data showed.
• The total volume of LNG cargoes on the water for at least 20 days rose by 8.8% on the week, according to Bloomberg.
• LNG flows to North West Europe on Aug. 26 were 175.66 mcm/d, 17% higher than the 30 day average.
• Global weekly LNG imports rose 8% in the week to Aug. 27, reaching 7.7 million metric tons, according to BNEF.
• US LNG exports are more profitable to Asia for each month through to February, according to BNEF.
• JKM-TTF Sep 23 up 0$/mmbtu at 1.21$/mmbtu
• China imported 5.86 million tonnes of LNG in July, down by 1.66% month on month, but up by 23.68% year on year, data from the General Administration of Customs of China (GACC) showed.