TTF Lower as EU Discuss Measures to Ease Volatility

European gas has opened lower, continuing the decline since the peak in late August, as the EU members continue to debate more measures to ease the European energy crisis.

• US Natgas NOV 22 down -2.7% at 6.28$/mmbtu
• The EU Commission plans to propose a mechanism to impose a dynamic price limit for transactions on TTF to avoid extreme volatility according to Bloomberg. EU is discussing the potential for a new temporary LNG linked index as an alternative to TTF as well as joint gas purchases and further demand reduction measures. The legislative proposals are set to be presented on Oct 18 ahead of the EU summit on Oct 20 -21.
• Gas supply to Europe is steady this morning with Norwegian nominations up at 338.3mcm/d and Russia gas flows via Ukraine unchanged at 42.4mcm/d.
• Strong LNG import flows and above normal temperatures forecast are helping to ease prices and fill storage ahead of an increase in winter heating demand. LNG imports into NW Europe average nearly 250mcm/d last week compared to a five-year average of about 75mcm/d.
• European storage levels continue to edge higher to 91.85% with weather forecasts showing above normal temperatures for NW Europe until the end of the month.