European natural gas: TTF spot supported by NCS works, curve climbs

London (Platts)--25 Oct 2017 916 am EDT/1316 GMT

TTF wholesale gas contract rose across the board Wednesday morning as a combination of planned maintenance and bullish Brent crude led to buying interest amongst traders.

  • Norwegian field maintenance due to start Thursday morning
  • Dutch production set to recover to 116 mil cu m mid-week
  • Storage reservoirs flip back to net injections Tuesday

The TTF day-ahead contract was dealt at Eur16.90/MWh Wednesday morning, up 20 euro cent from the previous assessment, with the NetConnect Germany and GASPOOL equivalents changing hands at Eur17.25/MWh and Eur17.15/MWh, respectively.

Norwegian gas flows into the Emden-Dornum receiving terminals were running at 148 million cu m/d Wednesday morning according to Norwegian gas operator Gassco, continuing the recent trend of flows at full capacity.

However, flows are set to be reduced from Thursday morning for a 48-hour period due to field maintenance starting at the beginning of Thursday's gas day which will reduce Norwegian production capacity by 48 million cu m/d, Gassco reported.

Dutch gas production is set for an increase mid-week with nominations for Wednesday at 116 million cu m compared to the 109 million cu m produced on Tuesday, Platts Analytics' Eclipse Energy data showed.

After having withdrawn a net 6 million cu m from reservoirs on Monday, storage stocks grew by 7 million cu m on Tuesday according to Platts Analytics data, indicating that the withdrawal season has yet to kick in fully.

Russian gas flows into Germany remained at full capacity Tuesday with a total of 247 million cu m delivered into Greifswald and Mallnow combined according to Platts Analytics data.

Temperatures over Germany are due to stay above the seasonal average through to the end of the working week, however, temperatures are set to fall back in line with the seasonal norm over the weekend and begin Week 44 below average, CustomWeather data showed.

The TTF curve found support from an increase overnight in Brent crude pricing, with the front-month contract dealt at Eur17.75/MWh and the Summer 18 contract done at Eur16.45/MWh.

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