The UK gas system is oversupplied, according to npower’s daily market report.
The linepack is forecast to close 8mcm long.
Langeled flows have been reduced by 12mcm due to unplanned outages while LNG send-out through the South Hook pipeline is at 30mcm and BBL flows are at 25mcm.
Gas demand is expected to increase to 290mcm today.
Recent weather forecasts have added “a large amount of volatility” to the market, Tim Carter from the Optimisation Desk said.
Temperatures are expected to drop 3°C below seasonal normal levels which will increase demand by more than 40mcm.
However, weather forecasts suggest temperatures would pick up above average from January 19th.
Mr Carter added: “So this cold snap may be only a short term weather front. All this means is we’ve seen prompt and seasonal contracts drop.”
On the power system, margins are under 10GW.
Wind is generating 1.6GW and coal generation rose to more than 8GW.
CCGT remains at nearly 20GW while the French Interconnector is still at 75% of capacity following an outage announced earlier in the week.
Oil is trading above $34 per barrel (£23.12).
Mr Carter added: “Oil prices have rallied from the 12 year-low experience yesterday as the Chinese equities recover.”