BAKU, Azerbaijan, Oct.24. Total European underground storage levels reached 92.8 percent across Europe on 21 October, the highest level since November 2020, Trend reports via Rystad Energy.
“Liquefied natural gas (LNG) imports continued to be very strong in October as well, with high utilization across European LNG regasification terminals. So far in October, France is leading Spain and the UK as the largest LNG importer in Europe,” reads the latest report released by Rystad Energy.
The report reveals that for the coming week, prices are expected to stay more or less in the same range as last week, but with the potential for further decline.
“There remains a good chance of a further decline in gas prices as storage levels have reached even higher levels in Europe over the last week, temperatures are expected to stay above normal and wind speeds are expected around average for the year, and above normal in the UK. The gas market continues to be the main driver for reduced power prices, in addition to soft demand fundamentals and solid renewables generation in recent weeks. The Dutch Title Transfer Facility (TTF) spot contract closed as low as €51 per MWh on 21 October, a 16.1 percent reduction since the beginning of the week,” said the consulting company.
The report says that is a new record low for the year so far and a 41 percent reduction year-to-date, while it is also a massive 85 percent reduction since the peak in late August.
“In the futures market, the TTF saw declines on all contracts last week, and the front-month saw an 11.6 percent decline, closing the week at €114.9 per MWh. A gap has now opened up between front-month and longer-term futures, as gas for short-term delivery is traded at a discount. The same fundamentals that are weighing down the spot price are affecting the front-month as well and to a much lower extent long-term gas contracts. The front-month fell again on the morning of 24 October, posting a near 10 percent decline to €104 per MWh.”
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