Reduced Dutch Norg gas volume provides bullish impetus

The volume of natural gas reported in store at the Netherlands’ largest low-calorific gas storage site has been reduced by around 1 billion cubic metres (bcm), according to new data from the site’s operator NAM via the GIE transparency platform .

The level of gas in store at Norg listed on GIE was revised from 59.04TWh, approximately 6bcm, to 48.71TWh or around 5bcm.

This brings the stock level in line with the site’s maximum technical capacity, as limited by a recent court hearing (click here to read story).

This means the Norg facility is 100% full and no more injections will be possible until gas is withdrawn. Injections into Norg have stopped since 18 September.

One trader active on the TTF said on Monday afternoon the news could give a bullish signal to the market, as market participants digested the fact that they would be less able to call on Norg supply to meet L-gas demand this winter.

A second trader agreed the news was bullish, adding that not everyone had factored in the recent ruling from the Dutch court which limited Norg’s working gas volume to 5bcm.

European gas prices were rallying during early trading on Monday, with the TTF front-month contract trading at €17.075/MWh at 11.30 London time, €0.39/MWh above Friday’s ICIS closing assessment. A rising oil price may also have factored into the gains.

GIE has previously confirmed to ICIS that erroneous data had been published for the storage site since 31 July, and that NAM would correct the data (click here to read story).

Last year, net withdrawals from Norg began in October 2016 and continued through until April 2017. Withdrawals peaked in January, when a net 1.95bcm was taken out of the site over the month. alex.thackrah@icis.com