The National Grid has issued a warning that the UK could be unable to meet demand today if extra supply is not forthcoming.
A number of supply issues and freezing temperatures across the country has prompted the UK to issue an immediate request for additional fuel. The National Grid has warned that the UK could fail to meet demand if extra pipeline flows or gas shipments are not issued.
Forecasts published by the Grid show that demand in the UK is expected to be 395.7mcm today, with a supply shortfall of 49.5mcm. This lack of supply is unlikely to affect domestic users but if no further supplies are sent to the UK then industrial users could be impacted.
Wholesale gas prices, within-day, rocketed by 74% following the warning which urges suppliers to make more gas available.
The ‘Beast from the East’, combined with Storm Emma has resulted in snow and freezing weather, with some parts of the UK hitting a low of almost -8C°, resulting in a huge rise in heating demand during what is traditionally a milder time of year; demand levels have reached a 5-year high according to market analysts.
As well as the rise in demand, supply has also suffered from numerous problems which include; a pipeline outage in the Netherlands, constraints in Norway and technical issues at British facilities such as the North Morecambe Barrow terminal.
Last December, prices increased significantly following a crack in the Forties Pipeline which required repair work and led to its closure but today’s gains are even stronger. This is the nation’s biggest gas security test since the closure of the Rough storage facility last year.
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