Mid-Day Gas Summary: TTF Surges

TTF has surged to the highest level since early December amid supply concerns from extended unplanned outages at Norway’s Nyhamna and Easington plants.

• TTF JUL 24 up 10% at 37.65€/MWh
• TTF Q3 24 up 9.4% at 37.9€/MWh
• Norwegian pipeline supplies to Europe are today down at 251mcm/d with an unplanned outage at the Nyhamna plant, according to Gassco.
• The Nyhamna outage of 79.8mcm/d due to a downstream restriction and Easington outage of 72.5mcm/d on an upstream restriction have been extended for June 4 and still with uncertain duration.
• Temperatures in NW Europe are expected to hold near normal in the coming week but could edge back above normal during the second week of the outlook.
• Total European gas storage was up to 70.17% full on June 1 according to GIE compared to the five-year seasonal average of 57.8%.
• The proposed EU ban on Russian LNG transshipments would not pose a problem from Asia according to the EU Commissioner Kadri Simson.
• Contracted LNG sales prices set by China’s biggest state-owned suppliers set at $10/mmbtu could be a ceiling for spot purchases as key buyers have secured enough LNG contracts, according to Bloomberg.
• Negotiations for a Russia-China Power of Siberia-2 gas pipeline deal have run aground according to Reuters citing the FT. However, Kremlin spokesman Dmitry Peskov responded to the FT reports saying that there is no doubt Russia will sign a deal with China for the Power of Siberia 2 pipeline
• Algeria faces a challenge to obtain sufficient investment to achieve plans to boost gas production by around 45% to 200bcm before the end of the decade amid waning EU demand according to Montel sources last week.