Gas system undersupplied – DMR

The UK gas system has opened undersupplied. The linepack is forecast to close 26mcm short, according to npower’s daily market report. That’s because demand is above seasonal normal levels due […]

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By Jacqueline Echevarria

The UK gas system has opened undersupplied.

The linepack is forecast to close 26mcm short, according to npower’s daily market report.

That’s because demand is above seasonal normal levels due to cold temperatures.

Flows from Norway through the Langeled pipeline are more than 71mcm and those via Balgzand Bacton Line (BBL) are at 29mcm.

The UK Interconnector is flowing at 14mcm.

Gemma Bruce from the Optimisation Desk said: “Storage nominations at present are relatively mute with only Rough currently nominated to withdraw in any great significance. Given the current system shortage, we are likely to see a change in nominations across the day to help balance the system.”

 

On the power system, the peak margin is forecast at 6.4GW.

The French interconnector is importing at half capacity and wind is generating 2.1GW but is expected to drop to 1GW.

Ms Bruce added: “With nuclear generation also at 6.8GW we have seen gas fired generation ramp up to cover the shortfall and resulted in tighter margins.”

Brent oil is trading at $39/bbl (£26.5/bbl).

Ms Bruce went on: “US drillers cut the number of active rigs to the lowest level in more than six years. Today’s gains come after oil ended last week on a third week of gains which is the longest run the oil market has experienced since May last year due to the declines in US crude production.”