The UK gas system is undersupplied, according to npower’s daily market report.
The linepack is forecast to close 9mcm short.
Tim Carter from npower’s Optimisation Desk said: “Warm temperatures are still suppressing domestic demand which is just over 170mcm today. Forecasts for the balance of the month are set to remain comfortably above seasonal normal with predictions for the start of January also tracking just above normal.”
Exports through the IUK are at 30mcm and storage site injections are at more than 8mcm.
Mr Carter added: “Supply from Norway and the Netherlands is in line with last week’s levels.”
Three LNG cargoes are expected to arrive in the UK at the end of the month.
On the power system, margins are at 12GW.
Wind is generating 5.5GW “which keeps CCGT demand and particularly coal demand low today”, according to Mr Carter.
He added: “With wind expected to remain pretty consistent until Christmas and Heysham nuclear generator returned to service following an outage this week, the outlook for power is pretty bearish.”
Oil is trading at more than $35 (£23.1) per barrel.