Gas Summary at European Close: TTF Drops

TTF front month has plummeted during European afternoon trading, erasing yesterday’s geopolitical risk related gains surrounding shipping in the Red Sea. Latest downside comes from an upward revision in NW Europe forecasts, which expect above-average temperatures throughout December.

• TTF JAN 24 down -2.5% at 34.9€/MWh
• TTF Q1 24 down -2.6% at 35.15€/MWh
• Weather forecasts for NW Europe have been revised milder with the continent seeing above-normal temperatures throughout December.
• German natural gas consumption stood 2.6% below the 2018-2021 average last weeks, after rising 8.6% above the average in the week prior, driven by colder weather, Bnetza data showed.
• European natural gas storage was down to 90.9% full on Dec 12 according to GIE data.
• Pipeline supplies into Europe from Norway are today up to 356.5mcm/d and still above the five-year average.
• European LNG sendout dipped slightly to 385mcm/d on 12 December, from 400mcm/d the day before. Imports remain below levels seen last year.
• LNG shippers are likely to engage in more destination swap deals for Asia-bound cargoes in 2024, to circumvent the congestion at the Panama Canal, according to BNEF.
• China is expected to import 23 cargoes totalling 1.58m mt in the next seven days from Dec. 14, according to OilChem.
• Natural gas flows from Libya’s Mellitah gas plant to Italy’s Gela terminal resumed on Thursday, one day earlier than expected, Eni said.
• Russian gas flows to China via the Power of Siberia pipeline have risen since mid-November, Gazprom said, cited by Interfax.