Gas demand fallen further – DMR

The gas forecast has fallen to 12mcm due to weak demand, according to npower’s daily market report. Demand is lower as temperatures are higher than expected. The temperature forecasts suggests it […]

Register now!

By admin

The gas forecast has fallen to 12mcm due to weak demand, according to npower’s daily market report.

Demand is lower as temperatures are higher than expected.

The temperature forecasts suggests it will be colder next week at around 7°C and demand should increase by around 40mcm.

Client portfolio manager at npower Tim Carter said: “This might increase tightness in the fundamentals provided the high level of exports (48mcm today) continue into next week”

Gas flows are at 30mcm today and are thought to increase this weekend as 3 tankers are due.

 

The power system is comfortable with peak margins of nearly 16GW.

Wind generation is poor but it is expected to increase to around 0.5GW today and over 3GW tomorrow.

Mr Carter said: “This may help reduce the call on CCGT and provide gas storage sites with an opportunity for a bit of injection.”

Brent benchmark contracts touched $65.5 a barrel (£43.3Bbl) yesterday as Saudi Arabia’s return to air strikes over Yemen heightened supply concerns.

The pound has strengthened against the euro.