Gas supply concerns as Russia and Ukraine tension escalates

There are concerns around gas supply as a result of the escalated tension between Russia and Ukraine, according to the daily market report from npower. The news comes as Gazprom […]

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By Priyanka Shrestha

There are concerns around gas supply as a result of the escalated tension between Russia and Ukraine, according to the daily market report from npower.

The news comes as Gazprom this morning announced that Ukraine has not paid for its gas delivery in March. The country reportedly owes Russia $2.1 billion (£1.2bn) for gas – and counting.

While BBL flows have dropped back to around 24 million cubic meters (mcm), Langeled flows “remain unchanged” at 26mcm and South Hook flows “remain healthy” at 36mcm, Client Portfolio Manager Sarah Marshall said.

Yesterday Norwegian state-owned company Gassco announced there would be new fuel maintenance between the 11th and 13th of April “which could impact up to 24mcm of flows so we could see Langeled flows further drop out during that period”, she added.

 

“With temperatures set to drop back down to seasonal normal levels today, we are seeing a slightly undersupplied gas system with the line pack currently forecast to close around 5mcm short”, Ms Marshall said.

On the power front, there is a “healthy” peak margin of 17.7GW aided by a pick-up in wind generation at around 4.6GW.

Ms Marshall went on: “On the curve, we’re also seeing support due to the ongoing tensions between Russia and Ukraine and also the West with oil picking up to over $106 (£63.4) a barrel as Russia is the world’s largest oil producer.

“Oil gains are however kept in check as Libya prepares to load tankers with crude from the newly reopened ports.”