European Gas Prices Plummet to 21-Month Low, Gate Analysts Report

European natural gas prices have experienced a significant downturn, reaching levels not seen since mid-2024. The TTF benchmark, a key indicator for European gas prices, fell by over 3% in the lead-up to a high-profile international summit. This price drop has expanded the gap between Asian and European gas prices, potentially redirecting liquefied natural gas (LNG) shipments towards Asian markets. Meanwhile, Europe faces the challenge of increasing its gas storage from the current 74% to meet its 90% target, according to commodity experts at Gate.

TTF Declines Sharply Amidst Diplomatic Uncertainty

“The European natural gas market witnessed increased downward pressure in the past week, with the Title Transfer Facility (TTF) experiencing a decline exceeding 3% ahead of a crucial international diplomatic meeting,” Gate analysts noted.

“This movement resulted in TTF settling at its lowest point since July 2024. It’s likely that investment funds sought to minimize risk exposure before the weekend, given the unpredictable nature of the high-level talks. The weakening of TTF has led to a widening premium for the Japan Korea Marker (JKM) over European gas prices.”

“The price differential is expected to encourage the redirection of LNG shipments to Asian destinations. However, with European Union gas storage currently at approximately 74% capacity, trailing behind both last year’s levels and the five-year average, Europe will need to maintain robust LNG inflows to approach its 90% storage objective.”