Gas system largely undersupplied – DMR

The gas system has opened 39mcm short, according to npower’s daily market report. Alex Guiot from npower’s optimisation desk said it’s because of “a drop in Norwegian flows via the […]

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The gas system has opened 39mcm short, according to npower’s daily market report.

Alex Guiot from npower’s optimisation desk said it’s because of “a drop in Norwegian flows via the Langeled pipeline nominating 25mcm against 70mcm last week”.

This drop is due to maintenance on the continent which is re-routing flows from the UK.

Mr Guiot added: “LNG send-out has softened a little since Friday with temperatures a few degrees below seasonal normal supporting demand.”

 

Peak power margins have dropped to below 9GW. Wind generation is out-turning 1GW and is expected to increase to 3GW by the middle of the week.

CCGT demand forecasts are above 40mcm as it is generating more than 42% of the stack, while coal and nuclear are providing 20%. The French and Dutch interconnectors are at full capacity.

Mr Guiot went on: “Oil is back trading below $50 per barrel (£33/Bbl) today following the poor US jobs data on Friday.”

However the “relative strength of the dollar has continued to gain” which will help pressure oil prices, he added.