Mid-Day Gas Summary: TTF Tracks 4% WoW Decline

Front month TTF is on track for a net weekly decline of around 4%, weighed on by muted demand expectations, ample supplies and healthy storage levels. TTF prices recouped some losses earlier in the session before pulling back again following reports that the US pauses pending approvals of new LNG export projects. Red Sea shipping disruptions and LNG vessel delays amid diversions via the Cape of Good Hope failed to support prices.

• TTF FEB 24 down -2.1% at 27.2€/MWh
• TTF SUM 24 down -1.8% at 28.29€/MWh
• US President Joe Biden paused pending approvals of new LNG exports projects on Friday until the DOE has reviewed the economic and environmental impacts of new projects seeking approval.
• Temperatures in NW and central Europe are still forecast to hold above normal throughout the two week forecast period although could trend back towards normal during the first week of February.
• Norwegian pipeline supplies to Europe are today nominated up to 350.2mcm/d and in line with the average seen so far during January.
• European natural gas storage is down to 73.04% full on Jan 24 according to GIE data compared to the seasonal five year average of 61.2% with net withdrawals reducing this week.
• European LNG sendout was 347mcm/d on Jan 24 compared to an average of around 360mcm/d over the last week.
• Global gas demand is set for stronger growth in 2024 despite geopolitical uncertainty according to the IEA Quarterly Gas Market Report.
• Indonesia may issue LNG import licenses as the country is expected to face a shortfall of around ten LNG cargoes this year amid rising domestic natural gas demand, declining supplies and existing export commitments, analysts and market sources told S&P Commodity Insights.
• The Japan Organization for Metals and Energy Security (JOGMEC) is planning to give financial support to Japanese companies for new LNG projects, JOGMEC CEO Ichiro Takahara said, cited by Reuters.