Friday 18 March 2016

Gas system undersupplied – DMR

The UK gas system is undersupplied this morning, according to npower’s daily market report.

The linepack is forecast 16mcm short.

That’s because nominations from the Rough storage are under 10mcm.

Alex Guiot from the Optimisation Desk said: “If flows though are maintained at current levels of 26mcm then we should see the nominations increase and balance the system.”

Flows from Norway through the Langeled pipeline are at 70mcm and domestic demand is around 5mcm higher than yesterday.

[youtube url="https://www.youtube.com/watch?v=Id9qSrheOfg" width="575" height="323"]

 

On the power system, the peak margin is under 10GW.

Wind is generating below 1GW and peak power demand is below 46GW.

Mr Guiot added: "We have seen an announcement that EDF have restarted the Torness-2 reactor following the unplanned outage this week in a boost to peak margins but April sparks spreads are still firm following the recent support perhaps as the market waits to see if any further issues arise from Torness and the prognosis of Dungeness B-22 which remains offline until at least the 24th."

Mr Guiot went on: "CCGT nominations have already been increased this morning to over 50mcm today but that is still lower than yesterday when they reached 57mcm."

Brent oil is currently trading at $41.4/bbl (£28.15/bbl).