NATGAS: Slow-Cycle Gas Storage Sites at Risk Amid Limited Uptake
Nov-28 13:56
Narrow and at times inverted seasonal spreads risks closure of European slower-cycling storage sites due to limited uptake of capacity and profitability, Argus said.
- TTF summer-winter spreads for gas year 2026-27 and 2027-28 have improved in recent months but remained narrow at -€0.97/MWh and at -€1.25/MWh.
- Fast-cycling sites retain a comparative advantage in their capacity to help cover peak demand, capturing value from short-term price differentials.
- Centrica has repeatedly called for regulatory support to "upgrade and redevelop" the 16.5TWh Rough storage site in the UK to prevent closure given its low profitability. Rough has a 1.25 churn rate, below the 8.46 average rate in the UK.
- The 45TWh Rehden storage site has struggled to sell storage capacity for the second year in a row with only 30% sold ahead of this winter. The site has a the fourth-lowest churn rate in Germany at 1.75 compared to the 4.9 average. "There are currently no plans to close UGS Rehden," Sefe said.
- In October, Breitbrunn applied for approval to decommission the 11.5TWh site on 31 March 2027 after struggling to sell capacity. The Breitbrunn churn rate is the slowest cycling site in Germany at just 1.48.
- Bayernugs intends to close its 4.1TWh Wolfersberg storage site while the Uelsen, Inzenham-West, Frankenthal and Schmidhausen storage sites in Germany are all potentially at risk with churn rates below 2.
- Any storage closure must receive government approval beforehand and could allow governments to use the remaining cushion gas as emergency stocks.
Source: Argus
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BOC: Instant Answers For Bank of Canada Interest-Rate Decision
Oct-29 13:45
Following are the Instant Answers for the Bank of Canada interest-rate decision:
- Target for overnight rate: Reduced by 25 basis points to 2.25%, as expected
- Does the Bank signal it is prepared to lower rates in the future? Yes
- Does the Bank say lower interest rates will likely be needed in the future? No
- Does the Bank signal it intends to leave rates on hold? Yes
- Does the Bank mention core or underlying inflation has been elevated? Yes
- Does the Bank say it may be less forward looking with policy? No
BANK OF CANADA CUTS KEY RATE 25BPS TO 2.25%, SIGNALS PAUSE
Oct-29 13:45
- BANK OF CANADA CUTS KEY RATE 25BPS TO 2.25%, SIGNALS PAUSE
- BOC SAYS CURRENT RATE CAN KEEP CPI NEAR 2% IF FORECAST HOLDS
- BANK OF CANADA SAYS PREPARED TO RESPOND IF ITS OUTLOOK CHANGES
- BOC SEES 2026 GROWTH OF 1.1%, SAYS SLACK TAKEN TO BE UP SLOWLY
- BOC SAYS HAS LIMITED ROLE HELPING CANADA ADJUST TO TRADE SHOCK
BOC: BOC Signals Pause After Cutting Policy Rate Again By 25 BPs
Oct-29 13:45
- BOC goes for a second straight policy rate cut of 25 bps, bringing it to 2.25%, as expected by most economists.
- "If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment."
- Bank also prepared to respond if outlook changes.
- GDP growth seen about 0.75% annualized in the second half of the year following "severe" US tariff impact on autos, steel, aluminum and lumber.
- Bank projects GDP to grow 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027, with excess economic capacity expected to persist and be taken up gradually.
- Inflation pressures anticipated to ease in months ahead with CPI inflation holding near 2%. BOC's preferred measures of core inflation "sticky" around 3%.
- Bank says monetary policy's usefulness limited in Canada's adjustment to trade shock; cannot restore economy to pre-tariff levels of GDP.
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