TTF Holding Just Above Lowest Since June 2021

Front month TTF has opened higher to recover slightly from the lows of 28.8€/MWh earlier this week. Prices remain weak with low demand in Europe, strong LNG imports and healthy storage while Norwegian field maintenance continues to restrict supplies.

• TTF JUN 23 up 2.1% at 29.75€/MWh
• EU industrial demand has yet to see a significant increase despite the price decline while gas consumption for power generation has been limited by alternative fuel generation. Coal to gas switching could help to provide some gas price support.
• Europe LNG supplies remain strong with demand in Asia still muted by high inventory levels and despite the falling global LNG prices. LNG imports are helping to replace the missing Norwegian flows during the field maintenance. Total European net LNG imports flows were up to around 470mcm/d on 22 May.
• Imports from Norway are today down to 223.8mcm/d with maintenance outages including at Ormen Lange, Aasta Hansteen and Troll continuing into mid June.
• European gas storage was up to 66.22% full on 22 May according to GIE data compared to the five year average of 47.7%
• Temperatures in central and NW Europe are expected to fall just below normal at the end of the week before recovering back above normal next week.
• Gas transit flows through Ukraine are today at 41.3mcm/d and Algeria gas flow to Italy at Mazara are down at 31.8mcm/d due to scheduled works.