The TTF front-month contract, Europe's benchmark price, closed below €35/MWh on 10 May, as high inventories and brisk LNG sendout continue to weigh on prices.
Argus assessed the TTF front-month price at €34.635/MWh on Wednesday, the lowest for any day since 15 July 2021.
Contracts for summer delivery have continued to slide in recent weeks, as brisk LNG deliveries to northwest European terminals, high inventories at European storage sites and sustained weak demand have weighed on prices from the front of the curve.
Sendout from European terminals has been strong, as the expected demand return from northeast Asia is yet to materialise and has freed up cargoes for Europe. Aggregate sendout from European facilities, including the UK, was 5.1 TWh/d on 1 April-9 May, well above the three-year average for the period of 3.9 TWh/d.
And EU stocks were at 62pc of capacity as of yesterday morning, the latest GIE transparency platform data show, well above previous years. EU stocks had been at 37pc of capacity on 19 February last year.
TTF prices for summer delivery have consistently closed in contango, suggesting a financial incentive to frontload the stockbuild. If European storage fills early and China's LNG demand stays muted, prices at European hubs could fall further over the summer.
That said, the TTF front-month price remains at a significant discount to the TTF winter 2023-24 contract, closing €20.145/MWh below on Tuesday.
