Mid-Day Gas Summary: TTF Trades Lower

Front month TTF has removed some earlier losses but continues to trade lower on the day driven by a milder weather forecast next week although front month is still above the low of the year of 30.025€/MWh.

• TTF FEB 24 down -0.7% at 31.35€/MWh
• TTF SUM 24 down -0.8% at 31.4€/MWh
• Below normal temperatures are still expected in NW and central Europe this week but are expected to return to near normal in the second half of January.
• Gas demand for power generation in Italy could increase in 2024 due to lower hydropower output according to Montel sources.
• European natural gas storage was down to 84.27% full on Jan 7 according to GIE data and remains well above the seasonal five year average of 71.4% as net withdrawals remain just below normal.
• Norwegian pipeline supplies to Europe are down very slightly to 350.4mcm/d today and just below an average so far this year of 351.6mcm/d.
• Net European LNG import flows increased up to 337mcm/d on Jan 7 although remain below levels seen in 2022 and 2023.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days decreased 2% over the last week to 3.3mn tons as of 7 January, according to Bloomberg.
• Japan's Kyushu Electric is considering investing in Energy Transfer’s US Lake Charles LNG project to help secure stable future supplies, but nothing is yet decided according to Reuters.
• Qatari and Russian LNG cargoes continue to ship LNG via the Suez Canal, while route from the US to Asia east around Cape of Good Hope is busier than usual according to ICIS analyst Alex Froley.