Gas system oversupplied – DMR

The UK gas system is oversupplied, according to npower’s daily market report. That’s because demand has been reduced and is forecast at 197mcm. Tim Carter from npower’s Optimisation Desk said: […]

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By Jacqueline Echevarria

The UK gas system is oversupplied, according to npower’s daily market report.

That’s because demand has been reduced and is forecast at 197mcm.

Tim Carter from npower’s Optimisation Desk said: “This is influenced by lower domestic demand, smaller nominations from CCGT plants and also less exports through the interconnector to Europe. Meanwhile the small injection volumes at Rough are being offset by withdrawals at Holford MRS site.”

 

LNG send-out is currently at 40mcm and is expected to increase as five tankers are scheduled to arrive into the UK between today and Monday.

According to Mr Carter, LNG outlook in the country will keep “healthy” through the end of the year too.

He added: “This glut of LNG arriving in the UK comes amid record lows on Japanese spot LNG markets so Qatari producers are seeing better value in the send tankers to the UK to access better spot prices in the UK and Europe.”

Oil is trading at $48 per barrel.