Gas system short – DMR

The UK gas system is forecast to close 2mcm short, according to npower’s daily market report. That’s due to supply cuts from Norway at Kollsness and Nyhamna plants. Flows through […]

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By Jacqueline Echevarria

The UK gas system is forecast to close 2mcm short, according to npower’s daily market report.

That’s due to supply cuts from Norway at Kollsness and Nyhamna plants. Flows through the Langeled pipeline are at 13mcm.

Sam Hill from the Optimisation Desk said: “On Friday the Dutch government confirmed what has already been forecast that the Groningen gas field will be capped at 24bcm. This disruption to supply won’t come into play for a while and will likely support prices.

“The full outage on Rough’s injections and withdrawals is quashing demand which is well below averages. The reduced demand is keeping the system more balanced, combating the cuts to Norwegian supply.”

 

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

Wind is generating 2.7GW. Gas-fired power stations are generating 15GW, providing 49% of the stack while nuclear is at 7GW and coal at 2GW.

The Dutch interconnector is importing at full capacity and the French one is reduced to around 75% of its capacity.

Oil is trading at $48/bbl (£35.5/bbl).

Mr Hill added: “Following the Brexit vote we still have extreme volatility in the market place. A lot of businesses of all shapes and sizes as well as the markets are checking their bruises and deciding how to react.”