Gas system still oversupplied -DMR

The gas system is still oversupplied despite an increase in demand, according to npower’s daily market report. The total UK demand is at 213mcm compared to a seasonal normal of […]

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The gas system is still oversupplied despite an increase in demand, according to npower’s daily market report.

The total UK demand is at 213mcm compared to a seasonal normal of less than 170mcm.

Tim Carter from npower’s optimisation desk said: “The oversupply comes largely from strong LNG nominations from the South Hook which are currently 60mcm but only flowing at 50mcm.”

“LNG sendout looks set to drop away from the high levels of the next week with less tankers forecast to dock in the UK.

“Therefore the big swing fundamentals to look out for will be the storage injections, IUK exports & CCGT demand, which could be depressed thanks to strong wind forecasts.”

Interconnector (IUK) exports have dropped slightly to 31mcm.

 

Mr Carter said the power system is “a bit tighter than recent weeks”, with peak margins of just above 11GW.

Cooler temperatures, lower wind (1.4GW) and lower solar generation forecasts (which have dropped from 4.5GW to 3GW today) have increased demand by 3GW.

Oil has recovered from yesterday’s monthly lows of $61.50 a barrel (£40.2/Bbl) and is now at $66 a barrel (£43.2 /Bbl).