Daily Energy Market Report Thursday 31st Jan 19. Near-curve contracts at the NBP are softening at the open as temperatures are set to fall back to seasonal norms from next week.
The expectation that a cold blocking pattern will not make its way towards NW Europe, even if there is a snap period of cold demand there would seem to be plenty of supply to meet strong demand.
Once again, the NTS has opened oversupplied with demand 102mcm above seasonal norms –a 7.6mcm increase session-on session.
Expectedly, interconnector imports via the IUK and BBL have decreased and MRS send-out has turned-up by 10mcm to bridge the gap.
CCGT demand remains high at 81.5mcm.
A plethora of LNG remains set to flow to NW Europe as soft Asian demand and high shipping costs being main contributing factors.
The reduced Atlantic/Asian arbitrage opportunity and increased winter capacity available via Honningsvåg from the Russian Yamal facility is providing a much more diversified supply picture in comparison to this time last year.
Daily Energy Market Report Thursday 31st Jan 19 brought to you by British Utilities