Prices rise for low LNG storage and concerns about prices
The wholesale gas prices in the Netherlands and Britain rose mostly on Tuesday morning as withdrawals from storage sites for gas and uncertainty about LNG supply continued to support.
According to LSEG, the benchmark front-month contract for the Dutch TTF Hub increased by 0.78 euros to 48.50 euro per megawatt hour, or $14.70/mmBtu by 0914 GMT.
The Dutch contract for the month of March was 0.93 euros higher, at 48.58 Euro/MWh. However, the contract for the day-ahead was 0.12 euros lower, at 49.48 Euro/MWh.
The front-month contract in the British market gained 2.00 pence, to 123.50 p/therm. Meanwhile, the day-ahead contracts was up by 1.00 pence, at 130.00 p/therm.
Daniel Hynes is ANZ's senior commodity strategist. He said that the strong demand for gas has pushed down inventories.
Gas Infrastructure Europe data showed that Europe's storage sites for gas are 60.24 percent full. This is about 15 points lower than their previous level.
Hynes said that reports suggested Asian buyers might want to buy more U.S. LNG in order to appease the new President. He cited South Korea, Taiwan, and Vietnam.
On Monday, U.S. president Donald Trump assumed office and issued an executive order to resume the processing of export permit applications for LNG projects that were stopped by his predecessor Joe Biden.
In a morning report, Engie EnergyScan analysts said that this was good news from a structural perspective for Europe's LNG imports.
They added that short-term factors, such as a cold spell in southern U.S., could still disrupt LNG exports.
The global natural gas market will remain tight in 2018, as the demand for gas continues to rise and production grows less rapidly, according to a report released by the International Energy Agency on Tuesday.
The benchmark EUA contract on the European carbon markets was down by 0.30 euros at 79.69 euro per metric ton.
(source: Reuters)
