Earlier than planned repair work at the gas processing plant in Teeside helped edge up near-term gas prices today according to the daily market report from npower.
The Teeside site on the northeast coast receives gas from the North Sea and it can process up to 6% of UK demand for gas.
Sarah Marshall, Client Portfolio Manager on npower’s Optimisation Desk said: “Flows from Langeled and South Hook [gas terminals] remain unchanged at around 26 and 36 million cubic meters (mcm) respectively.
“This is supporting the near term and prompt gas prices along with news that maintenance at the Teeside processing plant has been brought forward five days and is now due to start today.”
The UK’s gas system opened undersupplied this morning, she said, with the Linepack – the amount of gas in the national grid’s pipes – forecast to close 2 mcm “short”.
Ms Marshall added: “This comes as you have cooler temperatures and the flows from the BBL drop back to just 19 mcm.”
As for electricity, the power system looked “very comfortable” this morning with a peak power margin forecast at about 16GW.
Increasing tensions in Ukraine continued to support prices further into the future, out along the curve, said Ms Marshall.
It was a mixed picture for oil prices which also gained on the back of Ukraine fears but US statistics about oil in storage kept this in check, she added.