Pricewatch | 17 Jan 2022 | Gas Matters Today

Only Subscribers can read the full Article

European gas prices continued to climb on Friday amid an unplanned outage in Norway and EDF revising its 2022 nuclear production target lower.

The February-dated NBP and TTF contracts settled 1.1% and 1.3% higher, respectively on Friday. The Dutch marker settled at the equivalent of USD 29.09/MMBtu – USD 0.64/MMBtu higher than the UK gas benchmark.

The rally was pinned on an unplanned outage at the Troll gas field, offshore Norway. Prices were also supported by EDF announcing a downward revision to its 2022 nuclear production target due to extended outages at five of the firm’s nuclear reactors in France.

Lower nuclear power volumes this year could see increased demand for gas-fired power – which could place further pressure on Europe’s already depleted gas inventories. As of 15 January, Europe’s gas storage levels were ~47% full – a level usually reached in February.

Across the pond, US gas benchmark Henry Hub fell for a second consecutive day, closing 0.2% lower at USD 4.26/MMBtu. The fall came despite colder weather in the US, especially in the north-east of the country, which is increasing gas demand for heating.

Asian LNG marker JKM staged a recovery, closing 0.7% higher at USD 32.85/MMBtu. The TTF-JKM spread narrowed to USD 3.75/MMBtu on Wednesday.

The European carbon price continued to climb, closing 1.9% higher at EUR 81.73/tonne.

As for crude, Brent and WTI bounced back amid supply concerns – as OPEC+ is still not hitting its monthly quota – and on fears that Russia could invade Ukraine.

Brent closed 1.9% higher at USD 86.06/barrel – its highest close since 26 October, 2021. As for WTI, it closed 2.1% higher at 83.82/barrel – its highest close since 2 November, 2021.

Front-month futures and indexes at last close with day-on-day changes (click to enlarge):

Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.