The UK has seen lower gas-fired generation online this morning as a result of wind picking up to 5GW once again, the daily market report from npower states.
There have also been pick-up in flows from Norway via the Langeled pipeline which is back up “near capacity”, currently flowing at 70 million cubic meters, Client Portfolio Manager Gemma Bruce (pictured) said. However there could be a reduction in flows later today, she adds.
The gas system has “opened at length” this morning, Ms Bruce said, adding: “The line pack is currently forecast to close around 20mcm long. This is largely due to a reduction in demand which is now 19% below seasonal normal levels as a result of the milder weather and also that we’ve got less gas-fired generation online.”
She continues: “As a result of the system comfort we have seen near curve prices push ever so slightly lower with the sentiment filtering through the gas curve.”
The power system is also “very comfortable”, with a peak margin of around 15.5GW.
Looking at prices, Ms Bruce said: “Prices across the power and gas curves have eased slightly this morning and are trading a touch lower although activity on the power market has been limited so far with only the front season having traded so far.”
She said the Russian-Ukraine crisis “continues to reduce liquidity on the market with all offers pulled on the power market yesterday afternoon as some certainty remained around the situation”.
She went on: “Crimea’s Moscow-backed Parliament yesterday voted to join Russia setting a referendum date for the 16th of March, a move that saw the US close sanctions against Russia as they stated that the referendum would be in violation of international law. So there’s a lot of uncertainty around the situation and as a result we have seen a slight reduction in liquidity across the power and gas markets.”