Market Insight
Tony Jordan
10 January 2023

Market Insights 10/01/2023

Markets continued to enjoy yet another bearish session yesterday.

The long-awaited restart of Freeport LNG may be another few weeks as several sources were quoted yesterday of the expected imminent start to be pushed back into February. It’s unclear how much impact this will have on the market (if any), as Europe is currently holding a healthy level of gas in store and has queue of LNG tankers due to arrive over the coming weeks which is helping keep the bears in control of market direction of late.

No doubt there will be a limit as to how low markets can continue falling and current price levels may now start to be tested.

Yesterday saw the TTF February contract settle at €65.35 (from €70.07) and the NBP February contract at 160.63p (from 171.30p).

No unplanned outage this morning and we see a flow level at 338mcm from Norway (340). Russian nominations showing Velke Kapusany at 29.8mcm (29.8) and Sudzha at 35.4mcm (35.4). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 82.59% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 17.

This morning we see the February TTF contract at €68, UP €3 to the previous settlement. 

A quick check on some key contracts:
Curve TTF February €68, Summer €69 (vs €65 and €73)
Curve NBP February 161p, Summer 171p (vs 171p and 182p)
UK Gas NBP spot 158p (from 165p).
UK Power DA £99 (from £99).

UK power prices show the UK February Baseload contract at £162 (£175) and Summer at £163 (£175).

In other areas of the market Brent Oil is at $83 ($80) and EUAs are at €79 (€81). Henry Hub is at $3.67 ($3.64) and JKM is at $26.87 ($27.06).