Gas system short – DMR

The UK gas system has opened 22mcm short, according to npower’s daily market report. That’s because some unexpected outages at Kvitebjorn and Troll gas fields have reduced flows from Norway. […]

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By Jacqueline Echevarria

The UK gas system has opened 22mcm short, according to npower’s daily market report.

That’s because some unexpected outages at Kvitebjorn and Troll gas fields have reduced flows from Norway.

As a consequence, the Langeled pipeline is flowing at 19mcm.

Sam Hill from the Optimisation Desk said: “We can expect medium range storage to withdraw later today to help the system to get balanced. On the LNG side, South Hook is nominating less volume than yesterday still with no new tankers on the horizon.

“UK temperatures will remain around seasonal levels for next week, although slightly above for now. This new forecast is not pressuring prices as we already have tight fundamentals.”

 

On the power system, the peak margin is at 9GW driven by low wind generation at 120MW.

Mr Hill added: “Gas fired power generation is providing nearly 50% of power in the stack and coal is at 11%. Both the French and Dutch interconnectors are importing close to capacity.”

Brent oil is trading at 51.32/bbl (£34.8/bbl).

Mr Hill went on: “After oil prices reached the highest level since July 2015 on Wednesday, prices dipped yesterday amid the strengthening of US dollar against the Euro, making dollar priced commodities less attractive to investors.

“On the supply side, disruptions still persist in Nigeria and Canada. Nigeria’s May production fell to 1.45 million b/d from 1.61 million b/d in April due to rebel attacks on oil installations whilst in Canada, new wildfires surged and forced oil utilities Cenovus Energy and Natural Resources to shut their production.”