Gas Summary at European Close: TTF Falls on the Week

TTF has fallen back on the day and is headed for a net loss on the week. Robust storage levels, coupled with easing supply risks have added downside.

• TTF AUG 24 down 0.8% at 32.97€/MWh
• Temperatures in NW Europe are rising back above normal into next week and holding generally above normal across Europe throughout the coming two weeks.
• Norwegian pipeline supplies to Europe are nominated up to 327.8mcm/d. Gassco is showing capacity reductions of 26mcm/d today falling to 23mcm/d next week.
• Total European stores are up to 78.1% full on July 3 according to GIE compared to the five-year average of 68.3% with net injection rates holding just below normal.
• LNG prices in NWE widened versus TTF to a month low, with traders citing improved cargo supply for the weakening, Platts said.
• Global LNG demand is set to rise 2% m/m in July to 32.1m, driven by higher demand from mainland China, the Middle East and South America, according to BNEF.
• Private gas companies in China are selling LNG import slots in new terminals via an exchange with new regasification capacity expected to start amid slowing demand, according to Bloomberg. Private gas companies often lack the credit and ability to secure cheap supply deals.
• Peak LNG demand in China is likely to be capped over the summer by increased hydropower generation in the south and power generation flex amid rising spot LNG prices, according to Reuters sources.
• Golar LNG signed a deal with Pan American Energy for a 20-year deployment for a floating LNG vessel in Argentina, Bloomberg said.
• India might have to rely heavily on LNGimports and undertake massive infrastructure development to achieve plans to add 500mcm/d of gas consumption by 2030, according to IEEFA.