Monday 19 December 2016

Gas demand above seasonal normal – DMR

Gas demand above seasonal normal – DMR

Gas demand is above seasonal normal levels, according to npower’s daily market report.

It is at 307mcm per day while the average for this time if the year is at 285mcm/d.

However the system is a bit oversupplied with the linepack expected to close 4mcm in length due to the return of unplanned Norwegian outages during the weekend.

Balgzand Bacton Line (BBL) flows are at 19mcm and the UK Interconnector is importing at 24mcm.

Gemma Bruce from the Optimisation Desk said: "These healthy pipeline flows are helping to compensate for the lack of LNG tankers we have seen in UK waters across December, although we are expecting the Aamira to dock at South Hook on the 21st of December.

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"Temperatures in the UK are set to remain around seasonal normal for the next week, before pushing above at the start of next week, a trend mirrored across Western Europe. This should help keep gas demand in check and is contributing to the softer prices on the near curve that we have seen this morning."

On the power system, the margin is comfortable as demand starts to ease before Christmas.

Ms Bruce added: "The French interconnector is exporting at 1GW to France and is forecast to flip to import mode for a few hours during this evening’s peak before once again exporting to the continent."

Wind is providing 2% of the stack and is not expected to pick up for the next couple of days before reaching a peak of 6GW by Wednesday.

Coal is generating 18% of the stack.

Brent oil is currently trading at $55.58/bbl (£44.4/bbl).

Written by

Bruna Pinhoni

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