Gas Summary at European Close: TTF Holding Gains

TTF front month is on track for its highest close since June 13 as rising tensions in the Middle East adds to the risks of LNG competition from ongoing heatwave in Asia.

• TTF SEP 24 up 1.8% at 35.72€/MWh
• Hamas political leader Haniyeh was killed by a strike on his home in Tehran, which it claimed was Israeli. Risks of an escalation in conflict in the region may put Israel’s offshore gas fields at risk potentially driving up Egypt’s LNG demand.
• Temperatures in NW Europe are forecast to cool slightly in the next few days but remain above normal throughout the coming two weeks.
• Norwegian pipeline supplies to Europe are up to 344.1mcm/d today.
• European gas storage is up to 84.71% full on July 29 according to GIE.
• OMV has been awarded an additional 29 TWh in gas pipeline capacity into Austria up to 2029.
• LNG stockpiles held by Japanese utilities fell 8.51% w/w to 2.15m mt in the week to July 28, trade ministry data showed.
• Investment fund net long positioning in ICE TTF futures remained relatively unchanged last week, according to the commitment of traders’ data for the week to July 26.
• The LNG vessel Shandong Juniper has diverted away from its previous location of El Salvador towards Asia supported by stronger spot demand in the region according to ICIS.
• First gas from the delayed Greater Tortue Ahmeyim FLNG project is expected over the next three or four months, according to BP CEO Murray Auchincloss cited by LNG Prime.
• A potential LNG export terminal that Argentina’s state-run YPF and Malaysia’s Petronas are considering would be built in the San Matias Gulf in Rio Negro, sources told Bloomberg.
• MNI Gas Weekly: Middle East Tensions and Heat Waves Bolster Price: Click Here