Pricewatch | 17 Nov 2022 | Gas Matters Today

Only Subscribers can read the full Article

European gas benchmarks TTF and NBP dipped for the first time in three days on Wednesday, with strong wind power production and recovering pipeline flows from Norway offsetting forecasts of colder weather in the coming days.

The front-month TTF and NBP contracts fell 8% and 9.8% respectively on Wednesday. The Dutch marker closed at the equivalent of USD 34.7/MMBtu, with NBP settling at USD 32.06/MMBtu.

The dip came after strong gains over the first two days of this week – amid forecasts of colder weather – with strong wind power production and an uptick in Norwegian flows offsetting concerns of rising demand due to the impending cold snap across much of Europe.

While European gas prices dipped, US gas benchmark Henry Hub continued to rally, closing 2.8% higher at USD 6.2/MMBtu. Expectations of colder weather across the US north-east has pushed prices higher in recent days, with the rally coming despite reports suggesting Freeport LNG is unlikely to resume operations this month. Freeport released a report into the 8 June fire at the facility on Tuesday and did not provide a date for a restart.

The US LNG player had previously said it expects to restart operations in mid-November. On Wednesday LNG carriers that had been waiting near the Freeport facility turned away, with one heading to Corpus Christi and the another heading for Gibraltar, according to ship tracking data. 

Crude prices failed to sustain momentum amid the restart of Russian crude exports to Hungary through the Druzhba pipeline. Rising Covid-19 cases in China also helped push prices lower.

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.

Contact the editor:

Eric Thorp
[email protected]

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.