Gas system short – DMR

The UK gas system has opened 5mcm short this morning, according to npower’s daily market report. Norwegian flows through the Langeled pipeline have dropped to 60mcm. The Rough storage facility […]

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By Jacqueline Echevarria

The UK gas system has opened 5mcm short this morning, according to npower’s daily market report.

Norwegian flows through the Langeled pipeline have dropped to 60mcm.

The Rough storage facility is helping balance the system and is nominating 40mcm.

Alex Guiot from the Optimisation Desk said: “Temperatures were revised lower at the back end of the month. Yesterday forecasts were showing temperatures above seasonal normal, we are now expecting few degrees below. This is providing volatility on the prompt market.”

On the power system, peak margins are below 8GW.

 

Wind is generating 3GW and is expected to “slowly decrease” through the day.

CCGT is providing 44% of the stack and coal 20%.

The Dutch interconnector is importing at full capacity while the French one has been reduced to 1.6GW.

Oil is trading above $30 (£20.4) per barrel.

Mr Guiot added: “Storages are still filling and are expected to for at least the next two quarters and maybe longer depending on how many barrels Iran can return to the market. Shale production is the other big question, up to now they have been resilient.”