Gas Summary at European Close: TTF Slides

Front month TTF has fallen on the day amid a milder weather forecast next week. Front month remains above the low of the year to date of 30.025€/MWh.

• TTF FEB 24 down -2% at 30.94€/MWh
• TTF SUM 24 down -2.1% at 30.99€/MWh
• Front-end of the TTF curve has fallen about $2 in the last month but US Henry Hub natgas and oil-indexation has hardly moved according to ICIS.
• Below normal temperatures are still expected in NW and central Europe this week but are expected to return to near normal in the second half of January.
• European natural gas storage was down to 84.27% full on Jan 7 according to GIE data.
• Norwegian pipeline supplies to Europe are down very slightly to 350.4mcm/d today.
• Net European LNG import flows increased up to 337mcm/d on Jan 7 although remain below levels seen in 2022 and 2023.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days decreased 2% over the last week to 3.3mn tons as of 7 January, according to Bloomberg.
• Japan's Kyushu Electric is considering investing in Energy Transfer’s US Lake Charles LNG project to help secure stable future supplies, but nothing is yet decided according to Reuters.
• Qatari and Russian LNG cargoes continue to ship LNG via the Suez Canal, while route from the US to Asia east around Cape of Good Hope is busier than usual according to ICIS analyst Alex Froley.
• US LNG is set for a significant capacity increase this year, with several export projects reaching final investment decision or finishing construction according to Energy Intelligence.