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TTF Reverses Earlier Gains with Supply Expected to Meet Demand

NATURAL GAS

TTF reverses earlier gains and resumes the decline as demand is expected to remain low and supplies stable.

  • TTF yesterday fell to the lowest since Sep 2021 as normal weather is expected to return to NW Europe following the below normal temperatures this week.
  • The short term boost to heating demand is expected to be easily met by steady imports and from gas in store. The higher demand for a few days over the coming week is unlikely to make a significant dent in the gas storage levels. European storage was at 81.49% on 15 Jan according to GIE.
  • The uncertainty and potential for a recovery in Chinese gas demand this year could pull LNG cargoes away from Europe and put pressure on European supplies.
    • TTF FEB 23 down -2.1% at 54.3€/MWh
    • TTF SUM 23 down -3% at 56.2€/MWh
    • TTF WIN 23 down -2.4% at 63.5€/MWh
    • TTF SUM 24 down -1.8% at 55.7€/MWh
    • TTF WIN 24 down -1.6% at 56.55€/MWh

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