Mid-Day Gas Summary: TTF Retreats

Front month TTF has pulled back from a high of 37.35€/MWh yesterday amid slightly easing LNG risks as major shipping firms such as Maersk and CMA CGM resume passage through the Red Sea. Near-term supplies remain healthy and warm weather is lingering into January.

• TTF JAN 24 down -4.7% at 33.85€/MWh
• TTF Q1 24 down -4.7% at 34.13€/MWh
• European natural gas storage was down to 87.06% full on Dec 26 according to GIE data compared to the seasonal five year average of 75% with overall storage levels almost unchanged in the previous couple of days.
• European LNG sendout edged up to 356mcm/d on Dec 26 from the lowest since October seen on Dec 23 down at 324mcm/d.
• Pipeline supplies into Europe from Norway are slightly lower at 348.8mcm/d today compared to an average of 353.3mcm/d over the previous week.
• LNG terminal capacity in China is expanding faster than import growth, requiring more LNG deals according to Wang Danxu at Sinopec Economics and Development Research Institute.
• QatarEnergy has signed a supply agreement with Shell International Eastern Trading Company in Singapore for up to 18m barrels of oil a year for five years starting in January 2024.
• The FLNG facility in Congo Republic is expected produce its first cargo by Q1 2024 according to a statement.