TFF front-month slides back to 13-month low amid record storage

The TTF front-month contract slide back to a 13-month low on January 25 of €56.66 ($61.8/MWh), as storage volumes across the region hit record levels.

European gas storage facilities are now 75% full, representing the highest level in months, despite a steep cut in Russian gas flow. Deutsche Bank even predicted on January 25 that German storage tanks could be filled completely as soon as July, leaving the country well-positioned to get through next winter as well. EU gas storage was at the lower end of the historical range last winter, when Russian gas was flowing, to the higher end of the range this winter, despite record low Russian deliveries, the bank said.

The imminent relaunch of the Freeport LNG plant in Texas, which underwent repairs following an explosion in June last year, should also help keep prices tempered. Prior to its closure, the facility was a major source of gas supply to the European market.

As of 14:15 GMT, the TTF front-month contract was trading at €57.00/MWh.