Mid-Day Gas Summary: TTF Retreats

TTF front month has been trading lower to reverse some of the gains seen yesterday with uncertainty over industrial action at Chevron’s LNG facilities in Australia weighed against low industrial demand, high inventories, and higher LNG arrivals in the last week.

• TTF OCT 23 down -6.4% at 36.86€/MWh
• NBP OCT 23 down -6.1% at 91.57p/th
• Chevron's two LNG production facilities in Australia of Gorgon and Wheatstone are set to begin industrial action next week over pay and conditions disputes. The facilities account for more than 5% of global LNG capacity.
• Norwegian pipeline supplies to Europe are unchanged from yesterday with a nomination today down at 181.6mcm/d due to the ongoing field and processing plant maintenance. An additional outage at Karsto is due to start tomorrow while key outages at Troll and Kollsnes continue until 7 Sep.
• European gas storage is up to 92.70% full on a 29 Aug according to GIE data compared to the five year average for this time of year of 80.5%.
• German natural gas consumption last week fell further below the 2018-21 average to 20.5%, compared with 19.9% the week prior.
• The latest EIA weekly gas inventories for the week ending 25 Aug will be released this afternoon at 15:30BST. The expectation is for a build of +27bcf according to a Bloomberg survey compared to a build of +18bcf last week and the seasonal normal of +53bcf.
• Argentina’s has injected record daily amounts of gas into the country’s pipeline system from the Vaca Muerta shale formation. The injections topped 100 mcm/d.
• LNG prices could spike this winter even with high storage levels in Europe due to political and market uncertainties according to Tokyo Gas.
• LNG sendout to Europe was at 320mcm/d on 29 Aug and in line the average seen over the previous week. Import flows to NW Europe are this week back up at the top of the five year range and the same levels as seen this time last year.
• JKM-TTF Sep 23 down -0.2$/mmbtu at 1.18$/mmbtu