Gas Summary at European Close: TTF Sinks

Front month TTF has reversed yesterday’s shipping-risk related gain to fall sharply on the day. Front month remains weighed down by bearish short-term fundamentals amid lower demand due to mild weather and steady supplies.

• TTF JAN 24 down -7.1% at 32.99€/MWh
• TTF Q1 24 down -6.5% at 33.36€/MWh
• Several companies shipping energy products have announced to pause shipments via the Red Sea, including Equinor and BP, sparking fears for supply passing through the Suez Canal.
• The US has put together a new naval task force to patrol the troubled area and protect commercial vessels. The Houthis warned the US they will be legitimate targets if they interfere in its ongoing operations against Israel-linked vessels.
• Above normal temperatures in NW and central Europe are expected to continue until the end of December.
• European natural gas storage was down to 88.36% full on Dec 17 according to GIE data
• Pipeline supplies into Europe from Norway are up near the yearly high at 358.5mcm/d today.
• Norway’s Equinor has signed an agreement to supply 111TWh, 10bcm per year, of natural gas to Germany’s SEFE starting 1 January for the duration of ten years, the Norwegian firm said.
• European LNG sendout was unchanged at 407mcm/d on Dec 17.
• The Alexandroupolis FSRU has arrived in Greece and is expected to start receiving cargoes early next year according to ICIS.
• EU energy ministers backed plans on Tuesday to extend its emergency cap on gas prices for another 12 months until January 2025, as well as two other emergency gas measures.