Gas Summary at European Close: TTF Softens

Front month TTF is trading lower today but has stayed within yesterday’s range as high storage levels and mild weather offset unplanned supply disruptions in Norway.

• TTF MAR 24 down -0.9% at 23.96€/MWh
• Norwegian pipeline supplies to Europe are today down at 325.9mcm/d with unplanned outages.
• Net European gas storage is above the previous five year range highs at 65.12% full on Feb 19 according to GIE data
• LNG stockpiles held by Japanese utilities increased by 3.9% on the week to 2.13mn tons as of 18 February.
• Germany’s SEFE may keep a natural gas supply contract with Russia as rising transportation costs mean the shipments of Yamal LNG to India’s GAIL may end up in Europe.
• European natural gas consumption has declined by 20% since Russia’s invasion of Ukraine, with the region’s LNG demand to peak in 2025 according to the IEEFA.
• Deutsche ReGas expects to launch its FSRU import facility in Germany’s port of Mukran by the end of this winter.
• A worst-case scenario that customers in Finland and the Baltics are cut off due to scarce gas supply has likely been averted according to OIES.
• Russian LNG transhipments are likely to continue despite the EU’s aim to phase out Russian gas imports by 2027 according to Fluxys via Montel.
• North Asian spot LNG prices have reached a near three-year low, amid milder weather, healthy stockpiles, and robust global supply.
• Weak spot LNG prices globally have sparked spot buying interest in India and the Middle East, aiding WAF and US sellers, Platts said.
• Indian natural gas consumption rose 24% year on year in January, with gains seen from all sectors, according to ICIS and PPAC data.