Gas Summary at European Close: TTF Surges

TTF is set for its highest close since mid-December, although has eased from its intraday high. Support comes from supply concerns due to extended unplanned in Norway.

• TTF JUL 24 up 5.4% at 36.07€/MWh
• TTF Q3 24 up 5.2% at 36.46€/MWh
• Norwegian pipeline supplies to Europe are today down at 251mcm/d with an unplanned outage at the Nyhamna plant, according to Gassco.
• The Nyhamna outage of 79.8mcm/d due to a downstream restriction and Easington outage of 72.5mcm/d on an upstream restriction have been extended for June 4 and still with uncertain duration.
• Temperatures in NW Europe are expected to hold near normal in the coming week.
• Total European gas storage was up to 70.17% full on June 1 according to GIE.
• The proposed EU ban on Russian LNG transshipments would not pose a problem from Asia according to the EU Commissioner Kadri Simson.
• Contracted LNG sales prices set by China’s biggest state-owned suppliers set at $10/mmbtu could be a ceiling for spot purchases as key buyers have secured enough LNG contracts, according to Bloomberg.
• Negotiations for a Russia-China Power of Siberia-2 gas pipeline deal have stalled according to Reuters and the FT, although have been disputed by the Kremlin.
• Algeria faces a challenge for investment to boost gas production to 200bcm this decade amid waning EU demand: Montel
• A planned annual natgas outage on Gazprom’s TurkStream commences tomorrow 4-Jun according to ICIS.
• The Hoegh Galleon FSRU to be used as an LNG import facility for Egypt based at Ain Sukhna is at the Reganosa LNG terminal at Ferrol, Spain.
• The year-on-year rise in Chinese LNG demand is slowing as high prices limit purchases according to Bloomberg ship tracking data.