Gas system short – DMR

The gas system is 10mcm undersupplied this morning, according to npower’s daily market report. That’s mainly due to lower flows from the UK Continental Shelf following an unplanned outage at […]

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The gas system is 10mcm undersupplied this morning, according to npower’s daily market report.

That’s mainly due to lower flows from the UK Continental Shelf following an unplanned outage at Shell’s Scottish gas terminal, St Fergus.

Sarah Astley from npower’s optimisation desk said: “The duration of this outage is currently uncertain, however it’s expected to last until the weekend at least.”

Exports via the Interconnector have reduced to 21mcm which is helping to ease demand.

Storage sites are currently nominating net injections of 17mcm however this could reduce through the day to help balance the system.

 

The power system is a bit tighter than it has been lately with the forecast peak margin at just below 10GW.

Wind generation remains relatively subdued at just more than 1GW. However it is forecast to increase through the day to a peak of more than 5GW tonight.

Ms Astley added: “Only low levels of wind generation are forecast for the rest of the week.”

Oil is trading lower this morning, dropping below $57 a barrel (£37/bbl).

Ms Astley went on: “This is due to exports from Saudi Arabia dropping to the lowest level in five months despite production remaining near record highs as domestic consumption rises.

“Oil prices also remain under pressure due to expectations of supplies from Iran following the nuclear deal last week.”