Gas system still short – DMR

The gas system is still short and is forecast to close at around 16mcm, according to npower’s daily market report. Langeled flows are at 20mcm and Balgzand Bacton Line (BBL) […]

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By Jacqueline Echevarria

The gas system is still short and is forecast to close at around 16mcm, according to npower’s daily market report.

Langeled flows are at 20mcm and Balgzand Bacton Line (BBL) is nominated at zero.

Prices have reduced after Centrica announced the working capacity at its Rough Gas Storage facility would be increased by 412mcm.

Basim Basheer from npower’s optimisation desk said: “This announcement will have an impact especially on the winter period as even though the increase in volume is not huge, it is roughly worth around two days’ demand.”

 

He added: “We are likely to see a replay of yesterdays’ action with Rough injecting around 21mcm throughout the day and MRS [Mediun Range Storage] kicking in at a higher price to make up for the shortage in supply.

The power system is “more comfortable today”, according to Mr Basheer.

Wind generation is at around 3GW although still remains below the forecast level of 5GW.

Mr Basheer said: “Peak margins today are at 12GW but could see it falling to 10GW if wind generation continues to underperform.”

Oil is trading at $56.6 per barrel (£36.22/bbl).