Market Insight
Tony Jordan
9 December 2022

Market Insights 09/12/2022

Freeport LNG finally announced it is delaying the restart until ‘mid-December’ with full operations not expected to be until March (unchanged).

The LNG plans in Germany have cost double the initial estimates of €3bn and now sit in excess of €6bn as it tries to quickly find replacement for the loss of piped Russian gas.

Swedish officials are now examining the explosive recovered from the scene of the Nord Stream 1 pipeline explosions. Any announcement around this, although probably not expected any time soon, will be interesting to see how the market reacts.

Friday saw the TTF December contract settle at €115.51 (from €112.56) and the NBP November contract at 271.51p (from 267.85p).

No unplanned outage this morning and we see a flow level at 339mcm from Norway (314). Russian nominations showing Velke Kapusany at 40.3mcm (37.6) and Sudzha at 42.4mcm (42.4). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 95.17% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 14.

This morning we see the December TTF contract at €115, DOWN €1 to the previous settlement. 

A quick check on some key contracts:
Curve TTF December €115, Summer €123 (vs €116 and €121)
Curve NBP December 272p, Summer 290p (vs 268p and 286p)
UK Gas NBP spot 95p (from 90p).
UK Power DA £141 (from £111).

UK power prices show the UK December Baseload contract at £264 (£260) and Summer at £256 (£259).

In other areas of the market Brent Oil is at $88 ($90) and EUAs are at €72 (€72). Henry Hub is at $6.30 ($6.37) and JKM is at $26.39 ($26.32).