Gas prices higher – DMR

UK gas prices are trading higher than yesterday’s close, according to npower’s daily market report. A less oversupplied gas system and a tick up in oil prices are supporting this […]

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By Jacqueline Echevarria

UK gas prices are trading higher than yesterday’s close, according to npower’s daily market report.

A less oversupplied gas system and a tick up in oil prices are supporting this as well as concerns over a potential tight winter period as some power plants could be closed in Europe.

However, National Grid has risen winter power margin to 6.6%.

On the gas system, the linepack is at more than 3mcm long.

Gas demand is below seasonal normal levels as exports through the UK Interconnector are low and temperatures are expected to be above average for this time of the year next week.

Flows from Norway through the Langeled pipeline are at 67mcm.

The Balgzand Bacton Line pipeline is importing around 11mcm, making up for the lack of storage withdrawal nominations.

 

Sam Hill from the Optimisation Desk said: “South Hook LNG send-out is still minimal, however we did have two tankers dock in UK waters yesterday, which may see a tick up in send-out later in the week.”

On the power system, the peak margin is between 11 and 12GW.

CCGT is generating 19GW, contributing 50% of the stack while wind is generating below 5GW but is forecast to reach 6GW later today.

Mr Hill added: “Coal-fired power generation close to 3GW is helping balance the system making up for the lack of French interconnector imports.”

Brent oil is trading at $52/bbl (£42.12/bbl).

The pounds is valued at €1.11.

Market trends and the effects of Brexit will form part of the discussions at the Energy Live 2016 conference on November 3rd in London. Limited free tickets available for energy end users and university students.