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European natural gas futures at the Niedeland hub TTF fell during trading on Tuesday by 4% to a 7-week low of 42 euros per megawatt hour, as abundant supplies of blue fuel and almost completely filled gas storage on the old continent prevail over forecasts for very cold weather in much of Europe in early December. informs the BNR.

Natural gas storage in the EU remains almost completely filled (at 97.43% as of October 26), with gas storage in Germany at 98.96%, France at 98.51% and Italy at 95.93%, according to the latest data from Gas Infrastructure Europe (GIE).

Liquefied natural gas (LNG) supplies are also continuing.

Chart of December gas TTF futures (in euro per megawatt hour)

At the same time, however, freezing temperatures and snow are spreading across the continent, leading to an expected increase in energy demand. Berlin and Helsinki are forecast to have low temperatures of -4.5 and -8.0 degrees Celsius, respectively, while parts of Scotland, north-east England and London will see snow and sub-zero temperatures.

Forecasts show a continuation of the cold pattern for most of Europe over the next two weeks, although some models suggest a potential temperature rise in the northwest from December 6.

That could curb the continent's current gas depreciation, as well as news of a stranded LNG tanker at an Australian export terminal halting deliveries as only one ship can dock at the terminal. This, in turn, may raise some concerns about supplies to the Northern Hemisphere in early winter, as Australia is one of the world's largest fuel suppliers.

New outages, adverse weather conditions or further restrictions on Russian gas could spur greater price volatility and exacerbate risks to global LNG supplies, according to a report by Bloomberg.

Bulgargaz proposes gas to rise by 8% in December

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