UK gas system ‘comfortable’

Posted on 10 February 2014 by Priyanka Shrestha

The gas system in the UK is “comfortable” today as it has picked up flows from the Netherlands, according to the Market Report.

That has led to contracts trading a “fair bit lower” compared to last Friday, says Tom Matthews (pictured), Client Portfolio Manager at npower.

There were limited gas flows into the UK last week as a result of an unexpected outage in a processing facility in Norway but Norwegian flows also remain strong today, he adds.

Mr Matthews said the power system is “comfortable” too, with the strong pick-up in gas generation compensating for wind energy.

Brent oil is trading at $109, with the main driver being “strong demand for heating oil in the US as temperatures have been below seasonal norm”.

Mr Matthews suggests keeping an eye on the gas system. He adds: “Look out for Norwegian flows after Wednesday as it may well be interrupted by the testing of compressors on the Troll field in Norway. That’s due to start on Wednesday and going forward for a couple of weeks. That may well have an impact on Norwegian flows so keep an eye on that story as any developments may well be a market driver.”

1 Comments For This Post

1. Marktime Says:
   
   February 10th, 2014 at 6:20 pm

   Sir,

   Now that gas flows are more positive and prices lower, currently, for
   those of a commercial nature, 60 pence/Therm, or 2.08 pence/ kW. Why are
   retail prices continuing to rise, when prices are reducing? Currently, the
   latter are over 4.0 p per kW. Obviously, the big 6 are on a real winner charging 100% more for their gas, and despite the claim that there is competition in the market, because of the complex tariff arrangements, retail prices are all very similar across the board. This is not a competitive market but a fixed one.

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