Gas system well supplied – DMR

The UK gas system is forecast to close 14mcm long. Flows from Norway through the Langeled pipeline are at 45mcm and South Hook LNG send-out is at 36mcm with three […]

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By Jacqueline Echevarria

The UK gas system is forecast to close 14mcm long.

Flows from Norway through the Langeled pipeline are at 45mcm and South Hook LNG send-out is at 36mcm with three tankers expected to arrive by the end of the month.

Exports via the UK Interconnector are at 29mcm.

Sam Hill from the Optimisation Desk said: “This is however having little influence on supply length. Storage facilities remain on import mode, taking advantage of lower prices with no nominations so far today.”

On the power system, the peak margin is under 13GW.

Wind is generating more than 1GW.

 

Mr Hill added: “Other sources of renewable generation like solar are set to be decent today, making up for any shortfall in wind.”

Gas-fired power generation is at 16.5GW providing 51% of the energy mix and the French and Dutch interconnectors are importing at nearly full capacity.

Oil is trading at $48.1/bbl (£33.1/bbl).

Mr Hill went on: “Oil has dropped off from the near $50/bbl (£34.5/bbl) prices seen last week. With Canadian forest fires on the retreat helped by cooler temperatures, production is beginning to resume helping supplies return to the comfortable levels we have seen throughout the supply glut.

“With no decision reached at the last OPEC meeting in Doha, analysts believe a similar result is likely to come out of the next meeting at the start of June. With political tension between Iran and Saudi Arabia continuing, they are unlikely to agree on a production freeze and with the new Saudi Oil Minister focused on increased production to drive out US competition a production freeze any time soon seems unlikely. Upside risk comes from the developing security of supply issues in Nigeria, Libya and Venezuela.”