Maintenance work at Norway’s natural gas fields from August 10 to September is expected to increase demand for liquefied natural gas (LNG) in Europe and tighten the global LNG market, according to the natural gas forecast report for July published by ICIS, the world’s largest petrochemical market information provider.
ICIS said in the report that an LNG oversupply of 2.2 million tons is expected in July.
According to the report, which states that Europe’s LNG imports are expected to increase by 17% on a monthly basis in July, Norway’s gas supply to Europe will continue to be the focal point in July.
The report noted that the next natural gas field maintenance period in Norway will start on August 10 and last until September, which will increase Europe’s LNG demand and cause tightening in the global LNG market, which has been oversupplied throughout the summer.
The report wrote that Europe’s natural gas storages is estimated be 87% full in July.
‘This rate is one point higher than in 2023 and three points away from the European Commission’s 90% occupancy target for November 1,’ the report said.
The report also said that there will be price fluctuations in TTF, the Netherlands-based virtual natural gas trading point with the highest depth in Europe.
‘Volatility in the ICIS TTF is expected to continue throughout July amid fears of an immediate reduction in Russian gas transit in early August and the ongoing heat wave in Asia, albeit with year-on-year lower maximum temperatures, weighting on LNG demand,’ it said.
