By KYIV. Dec 4 (Interfax-Ukraine) – The temperature in Europe in November was in line with the seasonal norm and almost a degree lower than a year earlier. In these conditions, the European gas sector, which still has the largest ever storage levels, can draw on this gas more actively. Daily gas withdrawals from underground gas storage facilities at the end of November exceeded the five-year average by around 50%. Forecasters say December could be 2 degrees colder than the same month last year and more than 3 degrees below the norm, which could also trigger gas withdrawals from storage.
Gas Transmission System Operator of Ukraine, or GTSOU, has accepted a nomination from Russia’s Gazprom today to transport 42.1 million cubic meters of gas through the country, compared with 42.3 mcm on Sunday, data from GTSOU show.
Capacity was requested only through one of two entry points into Ukraine’s Gas Transmission System, the Sudzha metering station. A request was not accepted through the Sokhranivka metering station.
Wind power generation in Europe remains below the norm: wind turbines generated 12% of Europe’s electricity in the fits three days of December, according to WindEurope data. Wind generation averaged at 17% in December 2022 and 22% in November 2023.
The spot price for gas in Europe rose 5% on Friday: the day-ahead contract at the TTF gas hub in the Netherlands closed at $488 per 1,000 cubic meters.
The spread between LNG prices in Asia and those in Europe widened: in Asia, the most expensive futures contract for January on the JKM Platts index is $580 per 1,000 cubic meters, and futures under the LNG North-West Europe Marker are $487 per 1,000 cubic meters.
The level gas storage in Europe is a key indicator for the global market. The region as a whole continues to pump gas into storage.
Current inventory levels in Europe’s underground gas storage facilities are 94.39%, which is 10 percentage points above the average for the same date over the past five years, according to Gas Infrastructure Europe.
Inventories fell 0.41 percentage point during the December 2 gas day, a Saturday.
European LNG terminals operated at 62% capacity in November and 60% since the start of October also.
Gas inventories in UGS facilities in the United States are of increasing importance for the global market, as the country is actively increasing gas exports.
The current level of inventories is 80%, which is 7 percentage points above the five-year average, according to the U.S. Energy Department’s Energy Information Administration.
