Active LNG exports from the U.S. and a full scale restart of the Freeport plant reversed the trend of low gas consumption from U.S. storage facilities.
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Operators continue to actively withdraw stocks, while the long-term seasonal trend foresees the end of the withdrawal season.
Against the backdrop of cool weather and failed attempts at wind generation, Europe also continues its active withdrawals at above the average annual rate.
Ukrainian transit
GTS Operator of Ukraine (OGTSU) accepted an application for Friday from Gazprom for 37.1 million cubic meters, the Ukrainian company said. The nomination for Thursday was 41.7 million cu. m. Capacities were declared at only one of the two entry points to the country's GTS, the Sudzha gas measuring station.
The application was not accepted for transit through the Sokhranivka entry point.
Sergei Kupriyanov, Gazprom's official representative, told reporters that "Gazprom is supplying Russian gas for transit through Ukraine in an amount confirmed by the Ukrainian side through the Sudzha GIS, of 37.1 million cu. m., on April 7th. The application for Sokhranivka was rejected."
OGTSU has declared force majeure for the acceptance of gas for transit through Sokhranivka, as it allegedly cannot exercise operational and technological control over the Novopskov compressor station.
The route through Sokhranivka can ensure the transit of more than 30 million cu. m. per day. Gazprom believes that there are no grounds for force majeure, just as there are no obstacles to continuing to work along previous lines.
European market
Electricity generation from wind turbines in Europe continues to be quite low. On Wednesday, they provided only 6.8% of the region's electricity needs, and on Thursday, the percentage rose slightly to 9.8%, according to the WindEurope association. Meanwhile, on Saturday the figure was four times higher, at 30.4%.
On Thursday, the spot gas price in the region was down another 5%. A day-ahead delivery contract at the TTF hub in the Netherlands closed at $489 per 1,000 cu. m.
There is a noticeable gap in Asian LNG prices compared to those in Europe. May futures on the JKM Platts (Japan Korea Marker, reflects the spot market value of cargo shipped to Japan, South Korea, China and Taiwan) is trading at $451; futures for LNG supplied to Northwest Europe (LNG North West Europe Marker) is at $438.
Reserves in Europe
The current level of gas reserves in Europe is 55.47%, 21 percentage points higher than the average for the same date over the past five years, according to Gas Infrastructure Europe (GIE).
During the gas day on April 5, reserves decreased by 0.12 percentage points. The current selection rate is significantly higher than usual.
European LNG terminals operated at an average capacity of 58% in March due to a strike at French terminals. For the first days of April, the load has been at 60%. The lion's share of French terminals, managed by Elengy, is gradually returning to work.
U.S. stock
The status of underground gas reserves in the United States is becoming increasingly important for the global market, as the country is actively increasing exports. America's largest LNG plant, Freeport LNG, has resumed operation of all three liquefaction lines.
This reduces the excess of gas in the U.S. market and increases supplies in the world market.
During the next reporting week, reserves decreased by 0.7 billion cu.m. whereas usually at this time, extraction of gas from the storage facilities has already stopped.
The current level of inventories is 38%, which is 19 percentage points higher than the average over the past five years, according to the Energy Information Administration (EIA) of the U.S. Department of Energy. ■