Wednesday 4 November 2015

Gas system still short – DMR

The gas system is currently forecast to close 6mcm short, according to npower’s daily market report.

Temperatures remain above average and are set to be milder for the next couple of weeks.

Norwegian flows through the Langeled pipeline are lower at 46mcm due to an unplanned outage at Aasgard gas field. It is expected to last five or six days rather than the one day which was initially anticipated.

Alex Guiot from npower’s optimisation desk said: “Gas demand continues to be supported above seasonal normal levels with strong exports to the continent.”

The LNG outlook remains comfortable with the South Hook and Dragon terminals flowing at a combined 54mcm.

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Power margins continue to be tight with the peak forecast at 5.8GW.

Wind is only generating 300MW and is not expected to increase before tomorrow.

Mr Guiot added: “With the French interconnector capacity restriction, we have healthy levels of gas-fired generation online to cover the shortfall (42% of the stack).”

Oil is currently trading at $50 a barrel (£33/Bbl).

The pound is currently worth €1.41.