May 30, 2024 15:28 GMT
Gas Summary at European Close: TTF Rises
NATGAS
Front month TTF is approaching European close with robust gains on the day. Higher Norwegian flows and strong seasonal gas storage levels are weighed against lower LNG imports and discussions in Europe on curtailing gas and LNG supplies Russia.
- TTF JUN 24 up 3.6% at 35.1€/MWh
- TTF Q3 24 up 2.9% at 35.7€/MWh
- Norwegian nominated flows to the UK and Northwest Europe terminals are at 293.00 mcm/d vs 5-day moving avg 278.18 mcm/d according to Gassco.
- European gas storage was 69% full on May 28 vs the 5-yr seasonal norm of 56% for this time of year according to GIE.
- European gas stocks remain high for the time of year, but injection rates have slowed slightly recently as spot gas prices jumped back over Eur30/MWh (around $10/MMBtu), amid geopolitical risks and competition for LNG according to ICIS.
- LNG flows to Northwest Europe on May 28 were 144.91 mcm/d, 15% lower than the 30-day average according to BNEF.
- Germany will scrap the gas storage levy at its border starting from January 2025, after receiving pressure from European neighbouring states, according to Sven Giegold, Germany’s state secretary for economic affairs and climate action, cited by Bloomberg.
- Australia’s Woodside has announced $1 bln in funding for its flagship Scarborough LNG project from state-owned Japan Bank for International Cooperation.
- JKM spot prices are holding around the $12/MMBtu level as a heat wave in India drives up gas demand, according to Bloomberg.
- Argentina’s state-run energy company Enarsa has bought at least seven LNG cargoes for July and August delivery, according to Bloomberg.
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