Gas prices were kept up this morning as the gas system is currently forecast to close “short” of 10 million cubic meters (mcm), according to the Daily Market Report from npower.
This basically means it looked like there would be more demand than there is supply.
Sarah Marshall, Client Portfolio Manager at npower said this led to “support” for prices on the prompt – that’s gas bought in the future, be it weeks, months or years ahead.
She said: “We have however seen a pick-up in flows from the Isle of Grain to around 10 mcm because a cargo is due there this afternoon.”
Flows from the South Hook gas terminal were below 5mcm but a cargo is due later in February so gas supplies could start to pick up.
“Withdrawals from storage are also helping keep the UK’s gas system well supplied,” she added.
The power system remains comfortable “especially for this time of year” with current peak power margin forecast to be 13.6GW.
Prices further in the future were also bolstered, said Ms Marshall: “This was mainly driven by increased carbon prices with December 2015 prices currently trading at around €6.8 per tonne.”