UK gas demand peaking – DMR

Gas demand in the UK is peaking at 365mcm today, according to the daily market report. However the linepack forecast is still 5mcm long. Temperatures are likely to increase and […]

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By Priyanka Shrestha

Gas demand in the UK is peaking at 365mcm today, according to the daily market report.

However the linepack forecast is still 5mcm long.

Temperatures are likely to increase and should be around six degrees warmer by the start of next week “shaving off over 80mcm in demand”, said Tim Carter from the Optimisation Desk.

The UK has seen a “healthy supply” of nearly 70mcm through the Langeled pipeline despite the Norwegian outage having being extended until tomorrow.

Storage sites are still pumping out near capacity “while we are actually seeing reduced flows from Holland and 10mcm export through IUK adding to the demand”.

 

On the power side, the peak margin remains “a little tight but still comfortable”, with more than 8GW spare capacity this afternoon. Wind is still expected to be very low today, under 1GW through the day before ramping up significantly tomorrow, reaching nearly 7GW.

Mr Carter added: “With imports through the French interconnector and reduced flow from Holland, the pressure remains on the CCGT fleet providing 47% of the stack with coal also cranking up.”

“Oil prices are back down again from yesterday having rallied to back above $30/Bbl (£21/Bbl), they have since pared gains and retraced back below $28/Bbl (£19.7/Bbl) as US inventories are expected to have grown once again according to a Bloomberg survey which expects a 2.75m barrel build,” he said.