Gas demand is 17% above seasonal normal levels today due to cooler temperatures, according to npower’s daily market report.
Langeled pipeline flows have reduced to 17mcm and is predicted to fall to zero tomorrow as a result of the shutdown of Easington gas terminal and maintenance at the Ormen Lange gas field on the Norwegian continental shelf. That is expected to last until 28th June.
LNG flows have increased, currently at 51mcm due to the arrival of a tanker at the South Hook Terminal over the weekend.
“A further four tankers are expected to be heading to the UK in the next couple of weeks,” said Gemma Bruce, Client Portfolio Manager at npower.
Gas-fired power stations are generating 14GW of power and is currently the dominant fuel source.
Wind production has fallen below what was predicted, currently at 2.5GW while imports from the continent are almost at full capacity.
Oil prices have firmed up and is now trading at $66.9/bbl due to Iraq and Yemen conflict.
Ms Bruce added: “Gains are however being kept in check by Iranian comments that OPEC is unlikely to cut production.
“We have also seen the Ukraine pay a further $32 million to Gazprom as pre-payment for gas as part of an interim solution agreed between the two parties in April.”
