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TTF Near Lowest Since Jul 2021 on Healthy Supplies and Low Demand

NATURAL GAS

Near term European summer natural gas still looks weak with high storage levels, LNG looking for a home due to subdued demand in Asia and with increasing alternative power generation.

    • TTF JUN 23 down -0.8% at 34.7€/MWh
    • TTF WIN 23 down -0.2% at 54.9€/MWh
    • TTF SUM 24 down -0.4% at 53.75€/MWh
  • Front month TTF is trading at the lowest since July 2021 with LNG floating at sea rising sharply in recent days.
  • German natural gas consumption last week stood 24% below the average demand during 2018-2021, Bnetza data showed.
  • Gas consumption for power generation demand could be limited by new solar PV coming online, French nuclear is seeing a partial return and heavier than normal snowfall providing a boost to Norwegian hydro-electric storage assets heading into Spring.
  • Cold weather, an Asia demand recovery and low prices boosting industrial demand are the main upside risks for winter and providing support to winter prices. European storage is unlikely to be enough to fully cover a tight winter with the region still heavily dependent on attracting strong LNG flows.

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