Gas system still short, pushing prices up – DMR

The gas system is undersupplied for the second day which has increased gas prices. That’s according to npower’s daily market report. The linepack is currently forecast to close 7mcm short. […]

Register now!

By admin

The gas system is undersupplied for the second day which has increased gas prices.

That’s according to npower’s daily market report.

The linepack is currently forecast to close 7mcm short.

Gemma Bruce from npower’s optimisation desk said: “This is largely as a result of lower St Fergus [gas terminal] flows with UK Continental Shelf nominated at 98mcm, a decrease of 17mcm from yesterday’s levels.”

Norwegian flows through the Langeled pipeline are nominated at 49mcm.

Ms Bruce added: “We have also seen a drop in the UK’s Interconnector exports today which are down 8mcm from yesterday.”

Storage is nominated to inject 26mcm today, with 9mcm of this coming from Rough. Ms Bruce went on: “However given the short gas system we could see some of these nominations adjusted in order to bring the system to balance.”

 

Power margins are comfortable today with the peak forecast at 13.5GW.

This comes as renewable feed-in continues to be healthy with wind generation contributing nearly 12% to the generation stack.

Ms Bruce said: “This is again falling slightly short of forecasts and is expected to tail off slightly overnight but remains healthy into tomorrow at more than 3GW.” Gas-fired generation is lower today.

Oil prices have gained nearly $1 and are currently trading at $44.81 a barrel (£30/Bbl). This is due to an unexpected fall in US crude inventories yesterday.

The pound is now 2.09% lower against the euro with £1 now worth €1.3669.