Gas prices flat – DMR

The UK gas market has opened flat this morning, according to npower’s daily market report. The system has opened below 7mcm long as mild temperatures are helping reducing demand. Sam […]

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By Jacqueline Echevarria

The UK gas market has opened flat this morning, according to npower’s daily market report.

The system has opened below 7mcm long as mild temperatures are helping reducing demand.

Sam Hill from the Optimisation Desk said: “We are however likely to see temperatures drop off closer to seasonal normal levels into the weekend and possibly below average towards the end of next week.”

The oversupplied system is supported by strong flows through the Norwegian Langeled pipeline and imports through Dutch Balgzand Bacton Line (BBL).

 

Mr Hill added: “The gas outage at Heimdal is persisting and there has been another unexpected outage, this time affecting Kollsness, a within day impact of 41.5mcm, helping support gas prices.”

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

CCGT generation is at 12GW, making up 41% of the stack and coal is producing 2GW.

Brent oil is currently trading at $54.43/bbl (£42.4/bbl).

Mr Hill said: “This comes as Russia has agreed to cut their production by 300,00 barrels a day as OPEC follows through on its production cap commitment. This will be discussed at a planned meeting tomorrow.”

The pound is valued €1.18.