Gas Summary at European Close: TTF Falls

TTF is extending its losses to its lowest since Aug. 27 with high storage ahead of the winter heating season offsetting geopolitical risks and lower Norwegian flows.

• TTF OCT 24 down 4.1% at 36.95€/MWh
• Norwegian pipeline supplies to Europe have fallen to 173.1mcm/d today, according to Bloomberg. Gassco shows capacity reductions of 200mcm/d today rising back to 237mcm/d tomorrow before the outages reduce to 165mcm/d by the end of the week.
• The weather forecast shows temperatures are expected above normal in NW and central Europe this week.
• European gas storage is 92.4% full on Sep 1 according to GIE.
• European industrial and residential-commercial gas demand is set for month-on-month increases in September following the end of the holiday period, ICIS said.
• A backlog of LNG tankers has formed outside the Bintulu LNG facility, Malaysia this week after outages and maintenance work disrupted production in August.
• Global LNG demand fell 20% in the week to Sep 1 to 6.49m mt driven by Japan and mainland China, according to BNEF.
• Asian LNG imports in August saw a slight decrease on the month with lower-than-expected consumption weighing on regional demand, Platts said.
• The Southeast Asian LNG marker fell to its widest discount vs JKM since October, Platts said.
• The global LNG market is vulnerable to further short-term tightening after recent demand in Asia due to unseasonably high temperatures and with hurricane threats to US exports, according to ICIS.
• The Everest Energy LNG carrier is returning to Arctic LNG 2 in Russia to reload despite tighter US sanctions, Bloomberg said.
• The LNG carrier North Sky, recently sanctioned by the US, delivered a cargo to PetroChina’s Jiangsu Rudong LNG terminal Sep. 1, Platts said.