Gas system long – DMR

The gas system is oversupplied this morning, according to npower’s daily market report. The linepack is 6mcm long as temperatures have reached above seasonal normal levels. Latest forecasts suggest temperatures […]

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

The linepack is 6mcm long as temperatures have reached above seasonal normal levels.

Latest forecasts suggest temperatures will stay a few degrees above seasonal normal levels through this week before a colder weekend.

Total UK demand has decreased by more than 20mcm due to reduced domestic consumption.

Tim Carter from npower’s optimisation desk said: “A couple of Norwegian outages announced yesterday afternoon have a total impact of nearly 30mcm on Norwegian production and could continue through today into tomorrow.

 

“These outages are only reducing the flows through Langeled by around 10mcm today so are only providing a little bit of support to prices.”

The peak power margin is comfortable at 8GW with wind providing more than 4GW which is helping to suppress CCGT gas demand today.

Mr Carter added: “This wind generation is below forecasts however with more than 5GW currently expected and more than 6GW later this evening, unless actual generation picks up in line with forecasts we may find margins squeezed a touch.”

The price of oil has increased to $45.5 a barrel (£29/Bbl) from $43.5 a barrel (£28/Bbl) yesterday.