TTF Weighs Australia LNG Risks With Low Demand

TTF front month has opened lower to reverse some of the gains seen yesterday with uncertainty over industrial action at Chevron’s LNG facilities in Australia weighed against low industrial demand, high inventories, and higher LNG arrivals in the last week.

• TTF OCT 23 down -3.9% at 37.85€/MWh
• Chevron's two LNG production facilities in Australia of Gorgon and Wheatstone are set to begin industrial action next week over pay and conditions disputes. The facilities account for more than 5% of global LNG capacity.
• Norwegian pipeline supplies to Europe are unchanged from yesterday with a nomination today down at 181.6mcm/d due to the ongoing field and processing plant maintenance. An additional outage at Karsto is due to start tomorrow while key outages at Troll and Kollsnes continue until 7 Sep.
• LNG sendout to Europe was at 320mcm/d on 29 Aug and in line the average seen over the previous week. Import flows to NW Europe are this week back up at the top of the five year range and the same levels as seen this time last year.
• European gas storage is up to 92.70% full on a 29 Aug according to GIE data compared to the five year average for this time of year of 80.5%.
• Temperatures in NW and central Europe are expected to increase in the first few days of September taking levels back above seasonal normal where they are forecast to remain throughout the coming two week forecast.
• Gas transit flows through Ukraine are unchanged at 42.3mcm/d today and Algeria gas flow to Italy at Mazara are this week the highest since early June at 68.8mcm/d.