European Gas prices climbed nearly 4% as upcoming Norwegian maintenance raises supply concerns. With storage levels still lagging historical norms, Europe must stay competitive with Asia to secure LNG ahead of winter, ING’s commodity experts Ewa Manthey and Warren Patterson note.
European Gas storage still trails 5-year average
“European Gas prices rallied yesterday. The Title Transfer Facility (TTF) settled close to 4% higher as attention increasingly turns to upcoming maintenance work in Norway, which will lead to lower Norwegian flows to Europe.”
“EU Gas storage is close to 75% full at the moment, lagging the 5-year average of 82% and well below last year’s level of 91% full. European prices will need to remain competitive relative to Asia to ensure enough LNG heads to Europe ahead of the next heating season. However, LNG send-outs in Europe have been trending lower since peaking in June.”
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