The gas system in the UK opened “a whopping” 18 million cubic meters (mcm) long as demand continues to be below seasonal normal levels.
That’s according to the daily market report from npower, which notes gas demand stands at just around 144mcm.
Prompt markets are expected to “drop off” this morning and so far day-ahead contracts are trading “at just 0.2 pence per therm below the close at 44.90”, Client Portfolio Manager Tim Carter said.
The EU Commissioner is travelling to Moscow today for talks on resuming Russian gas supplies to Ukraine and any further development “could provide further direction to prices”.
Maintenance at the Troll gas field have been extended and will overlap with the Norwegian Continental Shelf’s (NCS) scheduled outage from the 10th of September for a week, Mr Carter added.
This could lead to a higher risk of Langeled flows being disrupted if there are any unplanned outages, he said, adding: “This is likely to support September contracts.”
Looking at the power system, Mr Carter said it looks “pretty comfortable” with a peak margin of nearly 15GW.