Gas system short – DMR

The UK gas system is forecast to close 1mcm short, according to npower’s daily market report. LNG send-out from the South Hook terminal is “healthy” and more tankers are expected […]

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By Jacqueline Echevarria

The UK gas system is forecast to close 1mcm short, according to npower’s daily market report.

LNG send-out from the South Hook terminal is “healthy” and more tankers are expected to arrive in the UK.

Alex Guiot from the Optimisation Desk said: “Temperature forecasts are around seasonal normal levels for the next few weeks as we move further into the summer season. Next week will be a particularly busy time for outages across Europe with many planned maintenance.”

On the power system, the peak margin is forecast at 15GW.

 

Mr Guiot added: “Healthy wind generation today is helping to take the pressure off gas-fired power generation, which has dropped to 40% of the power generation stack.”

The French and Dutch interconnectors are exporting at “almost” capacity.

Brent oil is trading at $49.57/Bbl (£33.7/Bbl).

Mr Guiot: “US oil prices this morning are driven by the start of the summer driving season, while international fuel markets fell on rising output in the Middle East which mostly serves Asian customers. Demand in North America is set to pick up as the summer driving season signals peak demand, triggering a cut in the amount of open short crude positions that would profit from falling prices.”