Mid-Day Gas Summary: TTF Edges Higher

Front month TTF has recouped earlier losses to trade higher on the day at just above €30/MWh. Milder weather in Europe next week and above average gas storage levels are weighed against Middle East supply concerns and lower US export terminal feedgas due to weather disruption.

• TTF FEB 24 up 0.5% at 30.08€/MWh
• TTF SUM 24 up 0.2% at 30.15€/MWh
• Wires reporting that according to three maritime sources, the Maltese-flagged dry bulker Zografia has been hit by a missile in the Red Sea, around 100NM north-west of the Yemeni town of Saleef, sustaining minor damage.
• Four Qatari LNG tankers have resumed transit after pausing for several days amid ongoing Houthi attacks on vessels in the Red Sea, with at least one tanker resuming traffic via the Red Sea according to LSEG ship tracking.
• Two Russian LNG tankers have been diverted away from the Red Sea on late Monday after waiting at the northern entrance of the Suez Canal according to Bloomberg ship tracking.
• Temperatures in NW Europe are expected to turn from cold this week to above normal from around Jan 22 and with the warmer weather remaining until the end of the month.
• Norwegian pipeline supplies to Europe are nominated up to 348.3mcm/d today after small unplanned outages yesterday.
• Russia’s gas supply to Europe in H1 Jan has fallen 6.5% compared to whole month December’s average, according to Reuters.
• European natural gas storage was down to 79.14% full on Jan 14 according to GIE data compared to the seasonal five year average of 67.8%.
• The European Union expects EU gas inventories at 54% full at the end of March, under the conditions that member states reduce natural gas demand by 15% according to a presentation.
• Total European LNG sendout fell to around 390mcm/d over the weekend and back in line with the average seen in December but down from a peak of 509mcm/d on Jan 9 according to Bloomberg.
• The estimated quantity of LNG on tankers that have not unloaded for at least 20 days increased by 12% over the last week to 3.36mn tons as of 14 January, according to Bloomberg estimates.
• Global LNG imports rose to a new record of 9.3mn tons during 8-14 January, up by 21% on the week, driven by increased shipments into Japan, South Korea and NW Europe according to BNEF.
• Chinese LNG consumption is expected to grow by 7% this year, compared with 14% last year according to BNEF.
• Global commodities group Trafigura has signed a long-term LNG agreement with Canada’s largest natural gas produce Tourmaline.