Gas Summary at European Close: TTF Extends Gains

TTF front month is extending gains throughout the day, amid forecasts for an extended period of colder weather and storage withdrawal rates exceeding the five-year average.

• TTF JAN 24 up 3.9% at 43.73€/MWh
• TTF Q1 24 up 3.6% at 43.89€/MWh
• Temperatures in NW and central Europe are expected to warm up from the cold weather this week, but temperatures next week have cooled slightly from previous forecasts.
• Norwegian pipeline supplies to Europe are relatively unchanged today near the highs of the year at 351.8mcm/d.
• European natural gas storage is down to 95.93% full on Nov 29 according to GIE data compared to the seasonal five year average of 85.2%.
• Net withdrawals in the week to Nov 29 averaged 4,003GWh/d compared to the 2018-2022 average for the period of 3,490GWh/d.
• European LNG sendout dipped slightly back to 432mcm/d on Nov 29 after reaching the highest since May 5 at 478mcm/d the previous day.
• Normal operations at the 9mtpa Australia Pacific LNG terminal will resume Friday night, after a stuck tanker was freed that hindered loadings at the terminal according to ConocoPhillips, cited by Bloomberg.
• The new 5.5bcm Alexandroupolis FSRU in Greece will receive its commissioning LNG cargo in January with commercial operations at 75% of capacity by the end of February according to Montel citing the operator.
• Japan’s power utilities called for an increase in the strategic LNG buffer (SBL) Dec. 1 , as geopolitical risks continue to stoke concerns of supply disruptions, Reuters reported.
• Spanish natural gas consumption fell by 6.9% year on year in November, as declining demand from gas for power generation outweighed gains in demand from industrial users and households, Enagas data showed.