Gas Summary at European Close: TTF Falls

TTF is losing ground today amid continued muted demand and healthy storage injections.

• TTF AUG 24 down 1.3% at 31.43€/MWh
• Temperatures in NW Europe are forecast near normal this week before gradually increasing back above normal through the second week of the outlook.
• Norwegian pipeline supplies to Europe are today nominated at 320.7mcm/d.
• European gas storage injections have risen to 82.91% full on July 21 according to GIE compared to the five-year average of 73.2%. A continuation of average injection rates since April would bring European storage up to the EU target of 90% by August 22.
• Europe’s gas fired power plants will burn around 25% less gas this summer than in 2023 due to gains in solar capacity and replenished hydro stocks, Platts said.
• EU LNG measures against Russia reflect Europe’s growing confidence in a future without Russian gas, although may in the short term increase Russian LNG imports to Europe, OIES said.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days increased by 8.1% last week to 4.04m mt as of July 21, Bloomberg said.
• Freeport LNG loadings resumed this week, adding support for U.S. natural gas prices after the Beryl closure led to around 10 cancelled cargoes through August.
• Global LNG demand fell 15% on the week in July 15-21 to 6.62m metric tons mainly driven by Asia, according to BNEF.
• The 37.6bcm Driftwood LNG project on the US Gulf coast is more likely to proceed under new Woodside Energy ownership, according to Montel sources.
• China’s natural gas consumption is expected to rise by 6.5-7.7% on the year in 2024, according to a report issued by the National Energy Administration, cited by Xinhua.