Gas Summary at European Close: TTF Extends Gains

Front month TTF has extended yesterday’s gain, having climbed to its highest intraday level since Feb. 13 during the day. Support comes from slightly curbed Norwegian gas flows, although overall short-term fundamentals remain bearish.

• TTF MAR 24 up 4.2% at 25.43€/MWh
• TTF SUM 24 up 3.9% at 25.89€/MWh
• Mild temperatures are forecast to persists across Europe in the coming two weeks with especially warm temperatures expected in central Europe.
• European gas storage was up at 63.48% full according to GIE data.
• Norwegian pipeline supplies to Europe are today at 339.4mcm/d and in line with the average seen over the previous week.
• The Energos Force FSRU is near Germany according to ICIS. This ship is expected soon to take up a position as an LNG import facility at Stade, near Hamburg.
• LNG stockpiles held by Japanese utilities rose by 3.35% on the week to 2.16mn tons.
• Global LNG demand will increase this year as Chinese buyers have returned to the market, while European demand is increasing, Total’s Senior VP of APAC E&P Thomas Maurisse said.
• Woodside Energy has signed an agreement with South Koreas’ Kogas to supply 0.5mtpa of LNG for the duration of 10.5 years starting in 2026, the firm said.
• Gas imports to China are forecast to increase 8.2% to 179.1bcm in 2024.
• Asian LNG prices have fallen below long-term contract rates, which is likely to boost some spot buying activity of price sensitive buyers according to Bloomberg.
• Russia is diverting its LNG shipments to China via the Cape of Good Hope, which is adding ten days of travel time to reach their destinations in China and to sail back to the Yamal LNG project according to Reuters.