UK National Grid issues natural gas deficit warning for March 1st

Credit: mygridgb.co.uk

No doubt the UK gas drilling companies will point out they have a way of tackling this kind of problem. As it’s cold almost everywhere in Europe at the moment, with high gas demand, nobody wants to bail Britain out. Some industrial users will get paid to cut their demand instead.

The UK’s gas system operator National Grid has issued a gas deficit warning for Thursday’s Gas Day starting at 0600 GMT as demand is set to significantly outstrip supply due to a number of outages, reports Platts.

UK gas demand is forecast at 396 million cu m on Thursday, while supply is now forecast at just 361 million cu m, leaving a deficit of 35 million cu m.

The system had opened more than 50 million cu m short Thursday after an unplanned outage at the South Hook LNG facility added to other outages affecting UK domestic production, with NBP within-day prices trading at 12-year highs of 200 p/th.

“This warning has been issued in response to a series of significant supply losses resulting in a forecast end of day supply deficit,” National Grid said.

At 0854 GMT, National Grid said it had a requirement to buy locational gas and invited shippers to post offers on the on-the-day commodity market (OCM) locational market “at all locations” in a bid to reduce demand.

Earlier, National Grid said it would consider any user offers for single or multiple day trades via the over the counter (OTC) or OCM, and any Demand Side Response offers made via the OCM.

Calling for gas turndown from gas users is unusual and was a concern raised late last year by the Major Energy Users Council.

National Grid has flexible contracts with users for occasions where gas turndown might be necessary, and calling on those users to turn down gas is a real sign of the short-term stress.

“It is highly likely that National Grid will have to interrupt supply to industrial consumers as it struggles to balance the system as UK flexibility remains limited and the Continental temperatures are set to remain well below normal into the weekend,” S&P Global Platts Analytics’ Simon Wood said.

Continued here.

via Tallbloke’s Talkshop

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March 1, 2018 at 06:39AM

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