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 more than 13mcm short. Gemma Bruce from npower’s optimisation […]

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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 more than 13mcm short.

Gemma Bruce from npower’s optimisation desk said: “This is largely attributed to a drop in Norwegian flows via the Langeled pipeline which is down to 34mcm from 54mcm yesterday.

“We are unsure as to what the reason behind the drop in Norwegian production today is as Gassco has not reported any issues which could explain the lower flows.”

LNG is at 53mcm and the UK’s Interconnector exports are unchanged from yesterday at 51mcm.

Storage injection nominations are down to 27mcm. Ms Bruce added: “This is likely a result of the short gas system today and we may see nominations further reduced in order to bring the system to balance.”

 

Power margins are “reasonably comfortable” at close to 12GW with wind generation making up 10% of the stack, although this is still falling short of forecasts.

Wind contribution is expected to remain healthy across the day and into tomorrow which should help ease gas demand as less CCGT generation is required to be online.

Imports from the continent continue to be at full capacity in the direction of the UK via both the French and Dutch interconnectors.

The price of oil has increased slightly this morning to $43.41 a barrel (£27.73) however it is still trading “at near six and a half year lows”, Ms Bruce added.

The pound has lost some ground against the euro with £1 now worth €1.364.