The UK gas system is undersupplied today, according to npower’s daily market report.
It is currently forecast to be 19mcm short this morning.
“Significantly reduced” nominations from Norway’s Langeled pipeline are driving it, said Sam Hill from the Optimisation Desk.
He added: “Langeled flows are currently at just over 13mcm, in line with nominations. Increased IUK exports are also soaking up the gas supply – exporting at around 35mcm. South Hook LNG send-out is at 36mcm as the Qatari Mozah tanker finally has a confirmed expected date of 29th May.”
The UK has already experienced the peak power period today, with the margin “a touch above 13GW”.
Mr Hill said wind out-turn is tracking forecasts and is expected to ramp up during the day but currently production is just under 1.5GW.
Gas-fired power generation is around the 16GW mark, making up 48% of the stack, coal is at 2GW with nuclear at around 7.5GW.
Mr Hill went on: “Despite any security of supply issues it seems that the oil glut remains persistently stubborn. In the East Asian market’s main port Singapore, the oil trading hub for the world’s biggest consumer region, it’s hard not to notice the effects of the oversupply issues.
“A large fleet of 40 super tankers remains parked in its port used as floating storage facilities. The amount of oil stored in this way has increased significantly and paints a clear picture of the supply to demand ratio. Oil is currently trading at $47.95/Bbl (£32.9/Bbl).”