Gas Summary: EU Natgas Extends Gains

TTF is trading higher today supported by lower pipeline flows from Norway amid maintenance extensions at the large Troll gas field.

• TTF SEP 23 up 5.1% at 30.2€/MWh
• Norwegian pipeline supplies to Europe have fallen further today with nominations down at 308.3mcm/d with additional maintenance at Troll extended throughout the first three weeks of August.
• LNG sendout to Europe has averaged just over 300mcm/d at the start of this week compared to an average of around 333mcm/d in July and 378mcm/d in June. Prices in Asia edge higher to continue to encourage spot LNG deliveries to Asia over Europe.
• Total European gas in store was up above the five year range at 86.09% full on 31 July according to GIE data compared to the five year average of 71.0%.
• Natural gas demand from European industries is forecast to rise this winter year on year but consumption is expected to remain below pre-crisis levels according to a Goldman Sachs note.
• German total natural gas consumption in July stood at 1,187GWh/d, 22.3% below the 2018-21 average.
• In the US: The latest EIA weekly gas inventories for the week ending 28 Jul will be released this afternoon at 15:30BST. The expectation is for a build of +18bcf compared to a build of +16bcf last week and the seasonal normal of +40bcf.
• LNG exports will resume from ADNOC DAS Island LNG Plant as maintenance has now been completed.
• Chinese imports of LNG are expected to rise to 1.33m mt, up from 1.31m mt in the week to July 31, according to OilChem.