Gas Summary at European Close: TTF Rebounds

European gas prices are extending gains throughout the day rebounding from their lowest level since early October. Prices are rising despite no significant change in fundamentals and forecasts for milder weather in the coming week.

• TTF JAN 24 up 3.7% at 39.55€/MWh
• TTF Q1 24 up 3.7% at 39.89€/MWh
• Temperatures in NW and central Europe are forecast to rise above normal from this weekend.
• European gas demand for power could be limited in 2024 due to sustained hydro output, improving nuclear-plant availability and a rising share of wind and solar generation according to Bloomberg.
• Pipeline supplies into Europe from Norway are back up slightly to 348.2mcm/d but just below the recent highs amid planned outages at the Dvalin field this week.
• European natural gas storage is back to the top of the previous five year range at 93.31% full on Dec 4 according to GIE data.
• European LNG sendout was back up to 462mcm/d on Dec 4 after dipping back to around 415mcm/d over the weekend.
• LNG stockpiles held by Japanese utilities fell by 6.81% on the week to 2.19mn tons as of 3 December according to data released by the trade ministry.
• ExxonMobil sees 80% new lng under long-term contracts, 20% spot, according to a Bloomberg headline.
• Woodside Energy will buy 1.3mtpa of LNG for the duration of 20 years from Mexico Pacific's Saguaro Energia LNG project, the Australian company said.
• The Artic Aurora LNG tankers loaded from Norway in early November, set off for the Mediterranean to Turkey before switching back towards Lithuania and is now headed back up towards Hammerfest according to ICIS ship tracking.
• Italy’s Adriatic LNG terminal has applied to the energy ministry to boost capacity from 9.6bcm to 10.4bcm according to Montel sources.