Low gas fired demand helps ease wholesale NBP prices
Strong UK exports curbed losses on Friday, as the British system was forecast to end the gas-day 6.2mcm oversupplied as of 15:00 (BST), amid above average temperatures and exceptionally low gas-fired power demand.
Data from National Gas showed that pipeline exports to the EU (Ireland, Belgium, Netherlands) advanced at a rate of 65mcm/d throughout the session, which was an increase of more than 70% when compared to the same date last year. This served to bleed out excess supply from the system but limited the scope for storage injections.
Baseload power prices followed the NBP lower as demand for gas-fired power fell on higher renewable generation.
According to data from National Grid, CCGT (gas-fired) demand fell to an average of just 4.4 GW across Friday. This meant that gas comprised only 18.6% of the generation stack, with wind and solar increasing their combined share to 30.9%.
In other news, UK and EU leaders are set to meet this morning to deliberate the final details of a so-called ‘Brexit reset’ deal.
The summit, which is the first of its kind since the UK left the European Union, aims to boost trade and cooperation between the two markets.
The new agreement could focus on areas of cooperation including checks on food exports to the EU and continued EU access to UK waters for fishing in the hopes of easing trade barriers and boosting growth.
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Price commentary courtesy of Crown Gas and Power 