TTF Resumes Decline on Warm Weather Next Week

European gas continues to decline as the return of above normal temperatures to NW Europe is expected to eased demand and takes further pressure off import supplies.

• TTF FEB 23 down -4.6% at 55.6€/MWh
• TTF SUM 23 down -3.8% at 57.9€/MWh
• TTF WIN 23 down -2.2% at 66.7€/MWh
• The system has coped with the cold weather and higher heating demand over the last week with higher LNG imports but below the December record levels and with storage withdrawals still below the five year average rate. Temperatures in NW Europe are forecast to return above normal from around 29 Jan.
• Downside pressure also comes from the completion of repair works at the US Freeport LNG export facility. They have asked the US regulators for permission to take steps to restart the facility although further approvals will be required for the export terminal to resume gas liquefaction and ship loading.
• European gas storage is today down to 77.06% compared to the five year average of 57.7%.
• Norwegian supply is up to 337.7mcm/d although is expected to dip again over the coming couple of days with further planned field maintenance.
• Net LNG imports flows were at 435mcm/d on 22 Jan and gas transit through Ukraine is 24.4mcm/d.