European LNG prices hit record discount to Dutch TTF gas

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LONDON – European liquefied natural gas (LNG) prices hit a record discount on gas prices at TTF’s Dutch hub, which rose sharply as news of another scheduled maintenance on Russia’s main gas pipeline to the Europe put the markets on edge.

Gazprom’s announcement on Friday of a three-day maintenance outage on the Nord Stream 1 gas pipeline to Germany from August 31 supports a high risk premium on gas prices in Europe. Prices were already high, with the pipeline currently limited to 20% capacity.

According to S&P Global Commodity Insights, LNG shipments for October delivery in northwestern Europe on an ex-ship (DES) basis were valued at $60.183 per million British thermal units (mmBtu) on August 22.

This marked a record discount of $24/mmBtu on the TTF contract for October delivery.

The contract hit an intraday high of 296.60 euros per megawatt hour (MWh) on Monday before closing at 282.01 euros.

“While the TTF (price) jumped significantly from Friday’s close, LNG prices fell slightly on an outright basis in Europe for October deliveries, as the two markets parted ways. more,” said Ciaran Roe, global head of LNG at S&P Global Commodity Insights.

(Reporting by Marwa Rashad; editing by Jason Neely)


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