Gas system short – DMR

The gas system has opened undersupplied this morning, according to npower’s daily market report. The linepack is currently forecast to close 7.4mcm short as Norwegian flows through the Langeled pipeline […]

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The gas system has opened undersupplied this morning, according to npower’s daily market report.

The linepack is currently forecast to close 7.4mcm short as Norwegian flows through the Langeled pipeline are down.

Gemma Bruce from npower’s optimisation desk said: “Langeled flows are 12mcm lower today following the surge in flows yesterday and are now back in line with the levels before the Troll [gas field] maintenance on Friday.

“Therefore expect flows to remain around the 36mcm level.”

LNG send-out is lower than yesterday’s levels at 24mcm but has since picked up to the nominated level of 30mcm.

Ms Bruce added: “With five cargoes likely to be heading to the UK between the 18th and 24th of August we can expect flows to remain at this level and may even increase to more than 40mcm following the arrival of the tankers in the UK.”

The power system’s margins have improved from yesterday with the peak forecast at 11GW despite “very subdued wind generation”.

 

Imports through the French and Dutch interconnectors are at full capacity. Ms Bruce went on: “[This is] contributing to more comfortable margins today.”

Wind forecasts are expected to generate around 1GW today and it expected to be slightly higher tomorrow. Gas-fired generation will cover the shortfall.

Nuclear generation is slightly lower due to Hunterston B-7 power station beginning its online refuelling programme.

Japan has restarted a nuclear reactor for the first time since the Fukushima disaster in 2011 under new safety standards. Ms Bruce said: “This comes despite opinion polls showing the majority of the Japanese public oppose the move while industry wants the reactors back on to cut fuel bills.”

Oil prices are trading at $51 a barrel (£33).