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TTF Rallies After EU Gas Price Cap Proposal and on Cooler Weather

NATURAL GAS

TTF rallies after EC yesterday set out proposals for a high cap triggered if the price exceeds 275€/MWh for a period of two weeks and with TTF at a greater than €58/MWh differential to an LNG reference price.

    • TTF DEC 22 up 8.2% at 129.5€/MWh
  • A dip in temperatures at the end of the month are adding to the upside price pressures. Weather forecasts suggest above normal temperatures for the coming week before falling back below normal into December.
  • Norwegian supplies to Europe at today nominated at 338.8mcm/d before a one day outage at Oseberg scheduled for tomorrow impacting flows by about 26mcm/d.
  • LNG net import into Europe were at 436mcm/d on Nov 20 while gas transit via Ukraine is at 42.1mcm/d. Gazprom yesterday said that the volume of gas supplied for transit to Moldova via Ukraine exceeds the volume transmitted at the Ukraine-Moldova border. They warn if this transit imbalance maintains, it will start to reduce gas supply to Ukraine on Nov 28th.
  • European gas storage is edging lower at 94.84%.

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