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

Posted: March 1, 2018 by oldbrew in Energy, News, Uncertainty, weather
Tags:

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.
– – –
Baringa Blogs: Rough closure opens a new era for UK gas

Gridwatch UK

Comments
  1. ivan says:

    If various governments including this one as well as those in the past had pulled their heads out of the dark place and ignored the green blob regarding fracking there wouldn’t be this problem now.

    The same applies with coal fired and nuclear power stations and the shortage of electricity.

    All of these problems stem from the climate change act that should be repealed as soon as possible but won’t because the green blob has too many politicians by the short and curlies.

  2. oldbrew says:

    The recent closure of Rough gas storage (‘the only long-range facility in the UK’) is looking like a big mistake.

    For much of the past 30 years, Rough has been the primary source of gas supply flexibility in the UK – meeting up to 10% of peak gas demand at times.

    http://www.baringa.com/our-thinking/baringa-blogs/june-2017/rough-closure-opens-a-new-era-for-uk-gas/

    With the first seriously cold spell since the closure we’ve hit the limit on gas supply. Did somebody think cold spells were history for the UK and Europe? Think again.

    Baringa Blogs: It is after all likely that when the UK needs additional gas, the same will be true for continental European markets.

  3. Phoenix44 says:

    The deliberate wrecking of a cheap, efficient and reliable energy supply in order to chase phantom far in the future is one of the most bizarre, damaging and ludicrous things we have ever done.

    [reply] …and plan to do even more :/

  4. […] [Ed: see also this article from Tallbloke’s Talkshop: UK National Grid issues natural gas deficit warning for March 1st ] […]

  5. Yes, the Government was warned about this years ago. But what do Arts and PPE graduates know about anything important?
    https://www.telegraph.co.uk/business/2018/03/01/big-freeze-stretches-uk-gas-supplies-snow-forecast/

  6. oldbrew says:

    Telegraph: The gas grid operator admitted that without issuing a ‘gas deficit alert’ Britain’s supplies would fall short of demand by around 14pc, just hours after the Government insisted that there were no supply concerns.

    Govt. policy: ‘La la la, we can’t hear you’ :/
    – – –
    UK energy users urge review of government policy as NBP gas price spikes
    London (Platts)–28 Feb 2018 331 pm

    The within-day gas price in the UK was trading as high as 190 p/th early Wednesday after the Netherlands-UK BBL pipeline saw flows reduced to zero on a technical fault, and outages in Norway causing a volume impact of more than 50 million cu m.

    The outages hit as the UK continued to suffer the effects of the “Beast from the East” cold spell that has seen gas demand surge in recent days.

    “This current scenario is exactly what we have been warning about”

    http://www.platts.com/latest-news/natural-gas/london/uk-energy-users-urge-review-of-government-policy-10266548

    All the extra charges will be dumped on to gas consumers of course.

  7. Ve2 says:

    Under supplied by 10%, Fracking hell.

  8. Richard111 says:

    Hah! Topped up three weeks ago with 1,200 litres of LPG. Usually lasts all year. Been using the under floor heating a bit more this winter. Interesting to see how long it lasts this time/

  9. oldbrew says:

    UK gas supply warning ceases as cold snap continues
    1 hour ago – BBC

    The sub-zero temperatures and snowy conditions in the UK have caused a spike in demand for gas from consumers and businesses.

    National Grid has seen its highest demand for gas for six years in the past week.

    That increase in demand was coupled with unplanned outages to supplies coming from Norway, the Netherlands, and Belgium, leading to the National Grid warning.

    Suppliers responded to Thursday’s warning by pumping more gas into the system, and some large businesses agreed with their energy suppliers to use less gas.

    http://www.bbc.co.uk/news/business-43253155

    unplanned outages to supplies coming from Norway, the Netherlands, and Belgium — it would have been cold there as well.

  10. craigm350 says:

  11. hunter says:

    The green mob has starved the people of the UK of energy.
    There is energy shortage while literally sitting on plenty.
    There is no gas shortage. There is a shortage if people willing to stand up to the green mob.
    The gas is under your feet, ready to be out to good use.

  12. stpaulchuck says:

    but don’t you DARE do any fracking of the gazillion cubic feet of gas under your feet. Whoa no! that won’t do at all.

  13. oldbrew says:

    SHALE INDUSTRY USES ENERGY INSECURITY TO MAKE POINT ON GAS SUPPLY
    Date: 02/03/18 Bloomberg

    Britain’s natural gas fracking industry is using a cold snap that’s gripped large swathes of Europe this week and laid bare weaknesses in the U.K.’s energy supply to make its pitch.
    . . .
    “The U.K. is worryingly dependent on gas imports and this is forecast to increase to 80 percent by 2035,” said Ken Cronin, chief executive officer of industry body U.K. Onshore Oil and Gas. “The need to ensure we have our own homegrown source of gas rather than pursuing this continued over-reliance on imports has today become very evident.”

    http://www.thegwpf.com/shale-industry-uses-energy-insecurity-to-make-point-on-gas-supply/

  14. oldbrew says:

    Ministers were warned about Britain’s big freeze a month ago as death toll expected to climb

    Experts are looking at the health impacts of the ‘Beast from the East’.
    March 4, 2018

    With fears that the death toll could rise to beyond 2,000, campaigners say that public health officials were too slow to warn the public, with the elderly and the vulnerable being particularly hard hit.

    http://www.ibtimes.co.uk/ministers-were-warned-about-britains-big-freeze-month-ago-death-toll-expected-climb-1665123

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