Gas and power prices a touch higher – DMR

Power and gas prices in the UK have opened “a touch higher” today, according to npower’s daily market report. The gas system is balanced despite higher demand as Norwegian flows […]

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By Priyanka Shrestha

Power and gas prices in the UK have opened “a touch higher” today, according to npower’s daily market report.

The gas system is balanced despite higher demand as Norwegian flows have increased.

Demand remains considerably above seasonal normal levels – around 30% higher – but warmer temperatures forecast from tomorrow is expected to ease demand next week, Ms Astley added.

It is also supported due to a 11mcm increase in exports via the UK’s Interconnector to 40mcm this morning.

Langeled flows have increased by more than 30mcm, resulting in flows at just below 70mcm. LNG flows remain stable with South Hook at 34mcm and Dragon at 3mcm and two tankers are due to arrive in the UK over the next week.

 

Looking at the power system, Ms Astley said it “continues to see a touch of tightness”, with the forecast peak margin falling below 8GW.

Wind generation remains subdued at just above 1GW although it is forecast to increase through the day to a peak of 3GW this evening.

The French interconnector has returned after an unplanned outage and is now importing 2GW. The Dutch interconnector however remains offline due to maintenance and is due back at midnight tonight.

“Oil has increased by around $1.5 compared with yesterday morning to currently trade above $48/bbl. Unofficial data release last night showed a crude stock draw of over three million barrels. Official data due this afternoon is sure to lend further direction”, Ms Astley added.