Gas Summary at European Close: TTF Rises

TTF front month is on track for robust gains today. Support comes from a recovery in wider market risk sentiment and with escalating Middle East risks threatening LNG supply in the region.

• TTF SEP 24 up 3.2% at 36.63€/MWh
• TTF implied volatility has rebounded since late July as the market assesses supply concerns due to risks of an escalation in Middle East.
• Temperatures in NW Europe are forecast just above normal this week.
• Norwegian pipeline supplies to Europe stand at 350.5mcm/d today
• European gas in store is up to 85.97% full on Aug 4 according to GIE, on track to hit the required 90% level by Aug. 18.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days increased by 8.2% last week to 4.29m mt as of Aug 4, Bloomberg said.
• Traded volumes for JKM LNG futures cleared on ICE fell 6.84% on the month to 65,536 lots, Platts said.
• Japan’s Osaka Gas has signed a long-term LNG supply agreement with the UAE’s ADNOC for 0.8mn mtpa.
• China's LNG imports in July were marginally lower year on year but approximately in line with both last year and the previous record high from 2021, ICIS said.
• Ukraine’s Naftogaz and Ukrnafta have raised their gas output by 7% so far this year according to its CEO.
• Sempra’s Costa Azul LNG expansion project ion Mexico is 85% complete, the firm said Tuesday.
• Carnival, the world’s largest cruise line, could increase the proportion of LNG in its bunker fuel mix to 20% by 2030, Platts said.