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TTF Extends Gains on Tighter LNG Supply Concerns

NATURAL GAS

Near term TTF extends gains with import supply concerns supporting prices.

  • LNG imports into Europe are forecast to fall by around 20% in June month on month according to Bloomberg with a decline in US exports due to maintenance at Sabine Pass and a halt to Norway’s Hammerfest LNG adding to outages at the import terminals of Montoir LNG and Zeebrugge LNG this week.
  • High inventories and weak demand are easing the demand for LNG imports.
  • Gas spreads are still showing JKM at a premium of over 1$/mmbtu to TTF in Jul while US netbacks to Asia at 5.97$/mmbtu were again at a premium to netbacks to Europe at 4.74$/mmbtu based on Bloomberg data before the TTF open today.
    • TTF JUL 23 up 9.3% at 27.18€/MWh
    • TTF WIN 23 up 1.4% at 41.15€/MWh
    • TTF SUM 24 up 1.3% at 41.55€/MWh

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