Short gas system – DMR

The gas system is undersupplied due to an increase in demand, according to npower’s daily market report. The linepack is expected to close at 8mcm. Langeled flows are at 11mcm […]

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The gas system is undersupplied due to an increase in demand, according to npower’s daily market report.

The linepack is expected to close at 8mcm.

Langeled flows are at 11mcm and not expected to increase.

Exports to the continent are down to 15mcm this morning from the 28mcm nominated on Friday.

Maintenance is scheduled to begin on the Interconnector on Wednesday. Tim Carter from npower’s optimisation desk said: “Therefore we will see exports drop to zero from then.”

LNG send out is nominated at 39mcm today. He added: “However, with very few cargoes on the horizon we are not likely to see this flow rate continue.”

 

Margins on the power system are comfortable with the peak forecast at 13GW.

Wind generation is subdued at 950MW and coal generation is also relatively low at 23% resulting in gas fired generation making up 40% of the mix.

Brent oil prices have dipped today.

This comes after news the Organisation of the Petroleum Exporting Countries (OPEC) are keeping production targets the same, which has left the market oversupplied.

It’s also due to a fall in Chinese imports.

Mr Carter added: “China is the world’s biggest net importer of oil and they bought nearly a quarter less in May than they did the previous month which exacerbated worries about a global supply glut.”