Thursday 23 July 2015

Gas system long – DMR

The gas system has opened oversupplied this morning, according to the daily market report.

The linepack is forecast to close 7mcm long.

Following the end of the planned maintenance on Norwegian gas field, Troll, Langeled flows have more than doubled to 42mcm.

Sarah Astley from npower’s optimisation desk said: “This is perhaps slightly higher than expected.”

The system’s length has resulted in net storage injections increasing to more than 20mcm.

[youtube url="https://www.youtube.com/watch?v=vVUf5DubTMU" width="575" height="323"]

 

Ms Astley added: “However with the day-ahead contract still trading at a premium to August and September there is little incentive for injections to increase further.”

The Interconnector exports are also slow to react, remaining roughly in line with yesterday’s levels at 23mcm.

Gas demand for CCGT generation is a touch lower at around 30mcm with wind generation forecast at 2GW.

Ms Astley went on: “Oil lost ground yesterday after the official US crude stock data confirmed expectations of a 2.5m barrel stock build.”

Oil is currently trading just above $56 a barrel (£36/Bbl).