Natural Gas Summary at European Close: TTF Plunges

Front month TTF has pulled back from an intra-day high of €28.61/MWh to trade lower on the day amid an upward revision in weather forecasts.

• TTF APR 24 down -3.5% at 26.5€/MWh
• TTF SUM 24 down -3.3% at 26.84€/MWh
• Mild weather is set to persist across Europe in the coming two week forecast as temperatures edge higher into the middle of the month.
• Gas demand savings from households and businesses in Europe triggered by the energy crisis have continued this winter but have eased slightly from last winter according to BNEF.
• European gas storage was still high at 61.91% full on Mar. 4 according to GIE data amid below normal withdrawal rates this week. The seasonal five year average storage level is 44.8% full.
• Norwegian pipeline supplies to Europe are relatively unchanged today at 344.9mcm/d but could dip at times in the coming week with small, planned field and processing plant outages.
• New EU gas import infrastructure could result in an annual excess of 352bcm in LNG and pipeline import capacity by 2030, according to Montel citing Global Energy Monitor.
• LNG stockpiles held by Japanese utilities declined by 9.72% on the week to 1.95mn tons as of 3 March, according to data released by the trade ministry, cited by Bloomberg.
• Saudi Aramco and ADNOC are in talks to invest in US LNG projects, tapping opportunities to compete with the regional rival Qatar, sources told Reuters.
• LNG prices in the Mediterranean have climbed, pushing diffs to US Henry Hub to the highest since February and theoretically boosting attractiveness for US LNG cargoes.