Gas Summary at European Close: TTF Rallies

TTF front month has rallied back to its highest level since June 4, but with no clear market driver. Increased competition from Asia for LNG cargoes is likely to be constructive for European prices.

• TTF JUL 24 up 4.2% at 34.5€/MWh
• TTF Q3 24 up 4.3% at 34.95€/MWh
• Norwegian pipeline supplies to Europe have recovered to 325.1mcm/d today with the repairs to the Sleipner Riser Platform complete. Flows are however still restricted by an outage at the Visund field, reducing capacity by 15.4mcm/d until June 17.
• Below normal temperatures are expected in NW and central Europe this week but are forecast to edge back up to normal or just above into the second half of June.
• European LNG sendout was around 228mcm/d on June 8 according to Bloomberg compared to an average of 242mcm/d so far in June and 281mcm/d in May.
• Total European gas storage was up to 71.62% full on June 8 according to GIE compared to the five-year seasonal average of 60.3% as below normal net injection rates continue.
• The Hoegh Galleon FSRU to be used as an LNG import facility for Egypt based at Ain Sukhna is headed to Egypt after leaving the Sagunto LNG terminal in Spain during the weekend.
• Europe spent more than $630 billion on importing gas from alternative sources to Russia between 2021-2023 Rosneft CEO Igor Sechin said, cited by Platts.
• European natural gas futures are hovering around EUR30/MWh and could potentially fall as low as EUR20/MWh, a key support level prior to 2021, according to Bloomberg Intelligence.
• Lower natural gas prices and the expected global supply boost in the coming years is supporting sales of LNG power trucks and ships in a shift from oil, according to Bloomberg.