Both the gas and power systems in the UK are “very comfortable” today compared to yesterday’s “very short” gas system and “slightly tight” power system, according to the daily market report from npower.
The gas system opened “very well-supplied” this morning, with the line pack forecast to close over 28 million cubic meters in length, Client Portfolio Manager Gemma Bruce said.
Norwegian flows to the UK continue to be subdued as production has decreased while there has been an increase in flows from Norway to mainland Europe. Dutch flows have however “picked up slightly” from yesterday and there has been “healthy LNG send out” with the South Hook terminal currently exporting around 30 million cubic meters.
Looking at the power system, there is a “very healthy” peak margin of over 15GW, Ms Bruce said.
She added: “We’ve seen wind generation pick up to 2GW this morning from the lows yesterday and this is forecast to increase across this afternoon to over 5GW later today. As a result of the comfortable fundamentals, we have seen power and gas markets push lower this morning, with the front month base load contract last trade at 80p lower than the close.”
“We’ve also seen Brent oil dip below $106 per barrel this morning which is helping pressure the seasonal contracts.”