Mid-Day Gas Summary: TTF Slides

TTF is extending last week’s losses amid rising temperatures expected later this week. This is adding to the reduction in the geopolitical risk premium linked to Middle East supply fears

• TTF MAY 24 down 1.4% at 30.33€/MWh
• TTF Q3 24 down 1.3% at 30.91€/MWh
• Colder than normal temperatures are expected in NW and central Europe in the coming days before recovering towards normal or just above from around April 27.
• Norwegian pipeline supplies to Europe are today nominated down to 335.8mcm/d. Planned maintenance outages are expected to increase during this week to a peak of 101mcm/d offline on Apil 27: Gassco.
• European gas storage was unchanged at 62.06% full on Apr. 20 according to GIE compared to the seasonal five-year average of 44.1%.
• EU net storage levels have seen little change since April 17 after the strong injections seen in the first half of the month.
• Gas storage in ‘Europe Perimeter’ (Northwest Europe, Italy and Austria) is expected to hit ‘tank tops’ at the end of September and two weeks earlier than previously forecast according to BNEF.
• An LNG tanker arrived at Freeport in Texas on Saturday, the first in 11 days according to LSEG.
• TotalEnergies has signed a sale and purchase agreement with Oman LNG to offtake 0.8mtpa of LNG for ten years from 2025.
• Russia’s Sakhalin 2 LNG project is asking Chinese buyers to pay for cargoes in yuan as it looks to circumvent US sanctions with alternatives to the greenback.
• Egypt exported the first LNG cargo since mid-March despite rising concern for a lack of domestic supplies into the hot summer period.