Gas system comfortable – DMR

The UK gas system is comfortable today, according to npower’s daily market report. Sam Hill from the Optimisation Desk said: “Contracts that have traded in the gas market are up […]

By Priyanka Shrestha

The UK gas system is comfortable today, according to npower’s daily market report.

Sam Hill from the Optimisation Desk said: “Contracts that have traded in the gas market are up on last night’s close, with the power market looking flat to soft on the front month. Whilst the power market takes a breath after the steep climb seen yesterday, pound weakness may be lending to any upside.”

Norwegian Langeled flows are still subdued at 5mcm and there is an unplanned cut to St Fergus flows of 5mcm.

System support is coming from “decent LNG send-out” at South Hook of around 41mcm and send-out from the Heimdal storage facility.

 

Mr Hill added: “Yesterday saw the UK power market whipped into a very bullish session. Concerns over supply pushed contracts to record highs – the value on Monday the 19th of Sep was lifted to £200/MWh – the highest printed level on the UK power market. This has fed through to the coming weeks and front months with Oct 16 valued higher than Dec 16 and Jan 17.”

Total generation was expected to be 32MW for later this afternoon which pushed prices up however this has been revised to 4GW “which has seen a slight softening from these highs on the front month contracts”.

Mr Hill went on: “Elsewhere the pound is valued against the Euro at €1.17 and oil is trading at $45.89/bbl (£34.7/bbl) following an increase in oil refined products in US data yesterday.”