Mid-Day Gas Summary: TTF Rebounds

TTF front month is stronger today, rebounding from yesterday’s lows. Support comes from a recovery in wider market risk sentiment and with escalating Middle East risks threatening LNG supply in the region.

• TTF SEP 24 up 3.4% at 36.69€/MWh
• Temperatures in NW Europe are forecast just above normal this week, but the latest outlook suggests warmer weather over the coming weekend and into the start of next week before easing lower again.
• Norwegian pipeline supplies to Europe remain strong at 350.5mcm/d today with Gassco showing limited outages until 18mcm/d offline from Aug 10.
• European LNG sendout rose from the lowest since October 2021 back up to 213mcm/d but remains low.
• European gas in store is up to 85.97% full on Aug 4 according to GIE and are on track to hit the required 90% level by Aug. 18, well ahead of the Nov. 1 deadline.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days increased by 8.2% last week to 4.29m tons as of Aug 4, according to Bloomberg estimates.
• Japan’s Osaka Gas has signed a long-term agreement with the UAE’s ADNOC for delivery of up to 0.8mn metric tons per annum of LNG.
• Ukraine’s Naftogaz and Ukrnafta have raised their gas output by 7% so far this year according to Naftogaz Chief Executive Oleksiy Chernyshov.