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Gas Summary at European Close: TTF Reverses Earlier Losses

NATURAL GAS

Front month TTF has reversed losses earlier in the day, to be trading higher, driven by headlines of a potential power loss at the Freeport LNG facility, the second largest liquefaction terminal in the USA. TTF levels had softened earlier after Israel restarted the Tamar gas field.

  • TTF DEC 23 up 2.2% at 47.64€/MWh
  • TTF Q1 24 up 1.5% at 49.17€/MWh
  • The power draw at the Freeport LNG terminal decreased dramatically from 8:00ET (13:00GMT) on Monday, indicating the whole facility may be offline according to a Genscape report.
  • Israel’s pipeline natural gas flows to Egypt are currently at around 350-400mcf/d, still around 50% lower than prior to the conflict, a person familiar with the numbers told Bloomberg. Israel ordered Chevron to resume production at the 10bcm/yr Tamar natural gas field that was forced to halt production on 9 October according to a filing on Sunday by Isramco, stakeholder in the field.
  • Norwegian pipeline supply to Europe is today at 327.1mcm/d but is expected to increase tomorrow with the return of capacity at Oseberg following an outage.
  • Russian natural gas flows via Bulgaria continue today despite the new tax on transit flows according to Montel.
  • Temperatures in NW Europe are expected to remain generally above normal in the coming week but could fall back closer to normal in the second week of the outlook.
  • European natural gas storage was down to 99.45% full on Nov 11 according to GIE data amid smaller than normal withdrawals over the weekend. The five year average storage levels is around 89.6% at the time of year.
  • European LNG sendout was up to 446mcm/d on 11 Nov having increased from around 380mcm/d at the start of the month. Floating LNG storage at sea for at least 20 days has edged higher again to hold above the previous five-year range.
  • Spain may need to block LNG arrivals as the country’s regasification tanks are nearly at 100% full, TSO Enagas said Friday.
  • Spain’s Sagunto LNG terminal has reloaded two cargoes in recent days according to ICIS, indicating Europe is still comfortably supplies at the start of the winter heating season.
  • The switching of coal for gas in European power generation is a highly price responsive source of gas demand flexibility with an influence on global as well as European pricing according to Timera Energy.

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