Gas Summary at European Close: TTF Plummets

TTF has declined throughout the day to its lowest intraday level since Nov. 22 as robust Norwegian flows, healthy LNG supplies, and below-average storage withdrawals outweigh forecasts for slightly colder temperatures this week.

• TTF DEC 23 down -6% at 43.85€/MWh
• TTF Q1 24 down -5.6% at 44.94€/MWh
• Temperatures in NW and central Europe are currently forecast to hold slightly below normal this week and into the start of December.
• Norwegian pipeline supplies to Europe are today down again to 345.6mcm/d after recovering to 354mcm/d yesterday according to Bloomberg.
• European natural gas storage is down to 97.69% full on Nov 25 according to GIE data. The seasonal five year average is 86.5%.
• Russia gas supplies via the Power of Siberia pipeline to China have reached an all-time high according to Gazprom over the weekend.
• Mediterranean LNG is currently trading at a small discount to NW Europe due to high gas inventories in Spain paired with lower demand and higher renewables according to Blomberg.
• LNG deliveries to Europe and Turkey fell 13.5% last week to a four-week low of 3.2bcm, according to Montel citing Kpler ship-tracking data.
• The number of US LNG cargoes crossing the Panama Canal hasn’t changed much from 2022 as LNG’s priority slot has remained intact but this will end on Dec 1 according to Bloomberg.
• Singapore based Seatrium has announced the delivery of an FSRU to Greece’s Alexandroupolis LNG Terminal, according to Platts.
• As part of its strategic buffer, The Japanese government is looking at quadrupling its holding LNG volumes to at least of 840k mtpa by the mid-2020s, a government official told Platts.