Gas system balanced – Y report

The gas system is “relatively” balanced this week, according to Inenco’s Y report. The Greek referendum and the resignation of Finance Minister Yanis Varoufakis have led to cheaper imports to the UK. […]

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By Jacqueline Echevarria

The gas system is “relatively” balanced this week, according to Inenco’s Y report.

The Greek referendum and the resignation of Finance Minister Yanis Varoufakis have led to cheaper imports to the UK.

Kayleigh Winstanley, Energy Trader said: “The Greek default resulted in the value of the Euro falling against the Pound and that makes gas imports for the UK cheaper but it also makes exports to Europe via the UK more expensive.

“The resignation of the finance minister, although unexpected, has actually been met in a positive light. Europe simply couldn’t work with him but there’s hope now that a deal will be met.”

She added the Russia and Ukraine situation won’t affect gas supplies to the rest of Europe.

 

She said: “Although a deal hasn’t yet been found, Gazprom has confirmed its contracts to Europe will be fulfilled so there’s no real concern there at the moment that there’s going to be any disruption to supply.”

Maintenance works have started at the biggest Norwegian gas field, Troll, which affects flows into the UK but Ms Winstanley suggests there are other options to “counterbalance the fall in flows”.

It is a “good” time to buy for both flexible priced contracts and fixed priced contracts, she said.

Ms Winstanley added: “On the other hand, [for flexible priced contacts] if you are heavily hedged, I would perhaps hold for what could be quite a neutral week.”