Gas Summary at European Close: TTF Plummets

TTF has fallen to its lowest level since Jan. 3 and is down nearly 8.5% on the day. Healthy supplies, high storage, and below average withdrawals are putting pressure on prices.

• TTF FEB 24 down -8.5% at 31.6€/MWh
• TTF SUM 24 down -7.6% at 31.68€/MWh
• Norwegian pipeline supplies to Europe remain strong at 353.4mcm/d having held above 342mcm/d since the start of December.
• The Dutch government said on Monday it would turn on the “pilot light” – minimal production – at two stations in the Groningen gas field.
• Below normal temperatures are expected in NW and central Europe this week.
• European natural gas storage was down to 84.88% full on Jan 6 according to GIE data and remains well above the seasonal five-year average of 71.9% after smaller than normal net withdrawals at the start of this year.
• Withdrawals in the week to Jan 6 averaged about 2,650GWh/d compared to the previous five-year average for the period of nearly 3,500GWh/d.
• LNG prices are expected to remain at elevated levels in a range of $12 to $14/mmbtu this year until new supply at the end of the year according to note from Sanford C Bernstein.
• Egypt's Damietta LNG plant has resumed loadings for the first time since July 2023, according to ICIS LNG Edge.
• Shell Plc signed a 20-year deal to buy 2m metric tons a year of LNG from a Canadian floating export facility for supply to Asian markets according to Bloomberg.
• Ice-class restrictions at Finland’s Inkoo port will increase from Jan. 13, but are unlikely to affect LNG deliveries, according to Argus.