Gas system extremely short – DMR

The UK gas system has opened “extremely” short today. It needs 33mcm to be balanced, according to npower’s daily market report. Alex Guiot from the Optimisation Desk said: “Demand is […]

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By Jacqueline Echevarria

The UK gas system has opened “extremely” short today.

It needs 33mcm to be balanced, according to npower’s daily market report.

Alex Guiot from the Optimisation Desk said: “Demand is expected to be higher than seasonal normal levels as temperatures are forecast to drop slightly before picking back up.”

The Langeled pipeline is nominating at 25mcm and Holford storage is at zero.

On the power system, the peak margin is expected to reach 15GW.

Wind is generating 3GW but is forecast to fall later today.

 

Gas-fired generation is at 14GW and the French and Dutch interconnectors are importing at full capacities.

Brent oil is trading at $49.9/bbl (£33.9/bbl).

Mr Guiot added: “The oil price is threatening to break the $50 mark as the OPEC meeting gets underway.

“Prices are rallying as analysts are waiting for Saudi Arabia to make a number of offers to its fellow members to rebuild unity within the cartel more than 18 months after it decided to ramp up production levels to maintain its market share.”