Mid-Day Gas Summary: TTF Highest Since Jan

TTF front month has rallied to its highest level since January, supported by expectations of higher cooling demand next week and LNG supply risks from increasing Asian demand.

• TTF JUN 24 up 3.9% at 34.3€/MWh
• TTF Q3 24 up 3.8% at 35.08€/MWh
• Investment fund net long positioning in ICE TTF futures eased back from the most bullish since February 2022 according to the commitment of traders data for the week to May 17.
• Temperatures across Europe are expected to hold above normal throughout the two-week forecast period and into the first week of June.
• Norwegian pipeline supplies to Europe are today nominated back up to 264.9mcm/d and are expected to recovery further in the next couple of days as capacity outages reduce to around 55mcm/d on Friday.
• Total European gas storage is gradually building amid below normal injection rates up to 67.39% full on May 20 according to GIE compared to the five year seasonal average of 53.45%.
• LNG stockpiles held by Japanese utilities increased 6.6% w/w to 2.26m tons in the week to May 19 from 2.12m tons the previous week, according to data released by the trade ministry.
• Australia’s Santos is upbeat about long-term global gas demand and is aiming for an 85-15 split between long-term and spot contracts, Managing Director and CEO Kevin Gallagher said, cited by Platts.