Monday 3 October 2016

Gas system long – DMR

The UK gas system has opened oversupplied this morning.

It is expected to close 15mcm long due to a reduction in demand, according to the market report from npower.

Langeled flows are at 52mcm and LNG send-out from South Hook is at 5mcm with no tankers expected to arrive in the UK.

Flows to the continent through the IUK are at just under 9mcm.

Amardeep Ubhi from the Optimisation Desk said: "Power contracts are slow to get going this morning as gas contracts are firmer across the curve despite an oversupplied gas system, with higher oil and weaker pound providing upside risk to prices."

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On the power system, the peak margin is below 12GW.

Wind is generating more than 2GW and is expected to pick up to 4.5GW.

CCGT generation is under 18GW and nuclear production is at 7GW.

Mr Ubhi said: "There is an unplanned outage at Hartlepool 1 which sees a reduction of 620MW and likely to last until the end of the week, which could lend support to prices once power starts trading."

Brent oil is trading at $50.57/bbl (£38.9/bbl).