TTF Extends Pull Back After Surge Higher Yesterday

TTF is extending the pull back to lose some of the gains seen yesterday. Front month had surged higher on concern for tighter LNG supplies amid competition from Asia, but the rally pushed gas spreads back to favouring spot deliveries to Europe over Asia.

• Falling prices this year have increased interest from small Asian buyers but buying from key nations such as Japan and South Korea remains muted due to low demand and high inventory levels.
• The JKM-TTF spread is up around 0.75$/mmbtu after falling back to near parity following the TTF rally. The profitability of US LNG exports to Europe for July was estimated at 6.17$/mmbtu and to Asia at 5.76$/mmbtu according to Bloomberg before the TTF pull back today.
• Total European LNG sendout fell back to around 350mcm/d over the weekend and the lowest since March compared to an average of 443mcm/d during May.
• Total LNG imports into NW Europe decreased in May down to 88 arrivals from a record 97 in April. Nine shipments have arrived so far in June with another 24 currently scheduled in the next couple of weeks.
  • TTF JUL 23 down -5.5% at 26.9€/MWh
  • NBP JUL 23 down -3.8% at 64.65p/th
  • JKM Jul 23 down -1.3% at 9.17$/mmbtu
  • JKM-TTF Jul 23 up 0.5$/mmbtu at 0.73$/mmbtu
  • US Natgas JUL 23 down -0.5% at 2.23$/mmbtu