TTF seasonal price spread blowout
A warm start to the year, high storage inventories and strong LNG imports have flattened the front of the TTF curve and driven it down. This has opened the 2019 TTF summer/winter price spread to 3.6€/MWh, the highest level since 2012. A blowout in seasonal spreads sounds like good news for storage. But higher front year spreads don’t necessarily translate into greater margins, given forward hedging of summer injection profiles. 2020 spreads have also widened but by a lesser extent, reaching 1.8€/MWh (from below 1.5).