TTF -- Again -- September 3, 2021

From January 22, 2021, re-posting:

RBN Energy: how TTF became a premier natural gas trading hub and global benchmark.

In the past few years, the Netherland’s Title Transfer Facility (TTF) overtook the UK’s National Balancing Point (NBP) to become the premier gas trading hub in Europe. 

TTF has gained favor over NBP largely due to its location closer to more markets, supply pipelines, plentiful storage, and also the Netherlands’ Gate LNG import terminal, which has become paramount given Europe’s growing need for imported gas. 

As imports have grown, so has TTF in terms of its volume and its liquidity — a trend that is expected to continue as the European gas market evolves. TTF now shares the stage with Henry Hub and the Japan Korea Marker (JKM) as one of the key global benchmarks for LNG and natural gas. 

Though traders use TTF as a price index for LNG, much like its cross-Atlantic peer, Henry Hub, TTF is also heavily influenced by regional pipeline gas and storage levels. Today, we’ll look at the history of Europe’s premier natural gas index and the fundamentals affecting it.

TTF was recently in the news. RBN Energy covered it well.