Gas and power prices flat – DMR

The UK’s gas and power prices have opened flat this morning, according to npower’s daily market report. Sam Hill from the Optimisation Desk said: “Any upside risk is being driven […]

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By Jacqueline Echevarria

The UK’s gas and power prices have opened flat this morning, according to npower’s daily market report.

Sam Hill from the Optimisation Desk said: “Any upside risk is being driven by strengthening oil and shortness in gas supply.”

On the gas system, the linepack is more than 4mcm short.

Mr Hill added: “The Heimdal and Valemon processing plants are experiencing unexpected compressor problems. This has resulted in a reduction in flows through Langeled, now at 16mcm.”

South Hook LNG send-out is at 13mcm and four LNG tankers are expected to arrive in the UK later this week.

 

On the power system, the peak margin is below 10GW.

Gas-fired generation is at 17GW, providing 53% of the energy mix while wind is generating above 1GW. Coal production is above 2GW and nuclear is at 7GW, contributing 21% of the stack.

The Dutch interconnector is importing at full capacity and the French one is at 1.5GW.

Brent oil is trading at $48.8/bbl (£36.1/bbl).

Mr Hill went on: “A rebound in some global markets following the Brexit vote coupled with industry data showing that US stockpiles have decreased has seen oil push back up. The official data will be released this afternoon although the initial sentiment shows that confirmed decreases will likely push oil up further.”

The pound is valued at $1.33 and €1.20.