Tuesday 1 July 2014

UK “short” as Norway’s gas diverted to Europe

The UK was taking less natural gas from Norway this morning as it was drawn over to mainland Europe according to the daily market report from npower.

Sarah Marshall, Client Portfolio Manager at the supplier’s Optimisation Desk said: “We are seeing lower Norwegian flows as supplies are diverted to continental Europe and also maintenance at the St Fergus gas terminal continues.”

This was a factor behind the UK gas systems opening “undersupplied” this morning, with the Linepack (the UK’s gas network) forecast to close around 19mcm short of gas.

On the power front she noted continuing “healthy margins” of above 13 gigawatts (GW).

Gas from efficient CCGT (combined cycle gas turbine) plants is the “dominant” fuel source.
Nuclear generation has dropped off: though Wylfa in North Wales has come back online, Torness is closed for maintenance.

Wind generation is still "very subdued" though likely to rise tomorrow, added the analyst.