Prices Firm on LNG Supply Concerns

The benchmark front-month contract at the Dutch TTF hub was up 0.47 euros at 28.55 euros per megawatt hour (MWh) by 0915 GMT, LSEG data showed.

Gas prices started rebounding late last week after disruptions to U.S. gas exports, said Daniel Hynes, senior commodity strategist at ANZ bank.

The Freeport LNG export terminal will have one of its three trains closed temporarily for maintenance. The White House, meanwhile, is pausing approvals of LNG export projects to analyse their impact on climate change, the economy and national security.

“Ever since Europe transited away from Russian gas, the U.S. has been viewed as the natural replacement. However, this could be under threat if the approval process lingers on too long,” Hynes said, adding that 17 projects are seeking U.S. permits.

Delays to Qatari LNG shipments, which are taking longer routes to avoid the Red Sea, remain a concern, though weak demand and high inventories continue to limit the price upside, one trader said.

A drone attack on U.S. forces in Jordan, which increased tension in the Middle East and lifted oil prices, was less of a concern for the gas market, the trader added.

Europe’s gas stores are 72% full and withdrawals have slowed in recent days, Gas Infrastructure Europe data showed.

Meanwhile, the British day-ahead contract was up 2.20 pence at 70.70 therm, while the Dutch equivalent was up 0.18 euros at 28.38 euros/MWh.

Temperatures in northwest Europe are currently mild, limiting demand for heating, but they are set to drop below seasonal norms from Feb. 12, LSEG data showed.

Wind speeds should increase from Tuesday and continue to climb throughout the week.

In the European carbon market, the benchmark contract rose by 0.33 euros to 63.91 euros a metric ton.

(Reporting by Nora Buli in Oslo Editing by David Goodman)