Gas contracts trading firmer – DMR

UK gas contracts are trading firmer this morning, according to npower’s daily market report. The system has opened more than 5mcm long despite demand expected to be 35mcm higher than […]

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By Jacqueline Echevarria

UK gas contracts are trading firmer this morning, according to npower’s daily market report.

The system has opened more than 5mcm long despite demand expected to be 35mcm higher than seasonal normal levels.

Flows from Norway and the Netherlands are comfortable, supporting the system length.

Sam Hill from the Optimisation Desk said: “We have some send-out through the South Hook LNG terminal, however there are still no scheduled tankers expected in UK waters.

“Temperatures are just below seasonal normal levels and look set to drop at the start of next week before picking up again, above averages, into December.”

 

On the power system, the peak margin is forecast above 8GW.

Wind is generating around 3GW but is expected to drop this evening.

Coal generation is below 6GW, making up for any renewable production reduction. CCGT is at 22GW, contributing 52% of the stack.

Mr Hill went on: “Brent oil is trading at $48.59/bbl (£38.87/bbl) amid the ongoing OPEC production freeze negotiations which are now focused on discussions with Iran and non-OPEC Russia, after the Iranian prime minister signalled he would agree to a cut.”

The pound is valued at €1.17.