Mid-Day Gas Summary: TTF Dips

European gas prices are slipping further as fears around Australian gas strikes impact on the markets eases, while healthy natural gas stock levels and increased LNG supplies offer additional support.

• TTF SEP 23 down -0.8% at 34.9€/MWh
• TTF WIN 23 up 0.5% at 49.9€/MWh
• Chevron's two LNG production facilities in Australia - Gorgon and Wheatstone – that account for more than 5% of global LNG capacity are set to begin industrial action next week over pay and conditions disputes. ICIS has updated its Gorgon and Wheatstone LNG forecast to capture 1 week of strike action. The initial ICIS analyst estimate is that during this time there is a 20% cut in output or 1.5 cargoes. Strike action at Chevron’s Gorgon and Wheatstone LNG plants in Australia is unlikely to cause full shutdowns, according to ICIS.
• Norwegian nominated flows to the UK and Northwest Europe terminals at 181.80 mcm/d vs 5-day moving avg 188.58 mcm/d as maintenance at Troll and Kollsnes fields ramps up. Flows stood at just above 300mcm/d early last week.
• European gas storage was 93% full on Aug. 28 vs the 5-yr seasonal norm of 80% for this time of year according to GIE data.
• Norwegian hydropower reserves rose by 0.5 percentage points last week to 79.2% of capacity as of 29 August, narrowing the surplus to the five-year average to 5 percentage points, NVE data showed.
• LNG flows to Northwest Europe on Aug. 28 were 188.04 mcm/d, 22% higher than the 30-day average.
• The EU is set to import record volumes of Russian LNG in 2023, despite attempts to reduce its dependence on Russian energy, according to the Financial Times.
• US LNG exports are now more profitable to Europe in October and November, surpassing Asia as the premium basin for the front months, according to BNEF.
• JKM-TTF Sep 23 down -0.7$/mmbtu at 1.55$/mmbtu
• Qatar has so far locked in only 11.8m mtpa of its 48m mtpa expansion in long-term contracts, according to Platts.
• LNG stockpiles among Japanese power generators rose 10.4% to 2.01m mt in the week to Aug. 27, according to data released by the trade ministry.