Power and gas contracts firmer – DMR
The UK’s power and gas contracts are trading firmer this morning, according to npower’s daily market report.
The gas system is balanced although slightly oversupplied with the linepack 1.5mcm long.
That’s driven by a lack of demand in local distribution zones due to higher temperatures and the outage at Heiman plant still continues.
The UK Interconnector is exporting 50mcm.
Sam Hill from the Optimisation Desk said: “There is a new Qatari LNG tanker on the horizon, estimated to dock at Milford Haven on the 26th. LNG send-out from South Hook is nominated at 24mcm for today.”
On the power system, the peak margin is forecast below 11GW supported by wind generation which is more than 2GW and is expected to be above 3GW through the day.
Coal generation is lower and gas is providing 50% of the mix.
Mr Hill added: “Further support for margins comes from the French and Dutch interconnectors which are both just below their import capacities. There are also imports coming from the east to west interconnector, although less significant at 200MW.”
Brent oil is trading at $46.71/bbl (£35.4/bbl).
Mr Hill added: “That’s ahead of the US inventory data announcements later this afternoon. New data anticipates stockpiles will be declining, if this is by a significant margin prices will likely push up and this could feed through to gas and then power prices.”