France:North-South differential narrows as demand dips
The PEG Nord-PEG Sud Day-ahead basis narrowed intra-day on Wednesday following a sell-off on Peg Nord at the finish.
Peg Sud Day-ahead recorded some interest on Wednesday and traders were keenly watching the spreads between the two markets. By the time of the close, PEG Sud Day-ahead was trading at €15.25/MWh - just €0.15/MWh above PEG Nord Day-ahead. The contract changed hands in the morning at a €0.50/MWh premium to PEG Nord Day-ahead, at €15.20/MWh. Demand was expected to fall off on Thursday, with transmission operator GRT Gaz pinning demand for the Peg Nord gas at 43.7Mm³. This is 5Mm³ less than the estimated amount for the previous session, and 10Mm³ less than the actual amount delivered. In fact, since Friday last week, GRT Gaz has continuously underestimated the demand levels on their system.
On Friday, the difference was only 3Mm³, but on both Monday and Tuesday, levels have been closer to 5Mm³ above perceived demand. Peg Sud demand levels meanwhile have stayed true to nominations given the previous session. On Wednesday, levels were expected to total 19.60Mm³, down from 21Mm³ the previous session. Deliveries from Belgium, through the Blaregnies entry point, meanwhile were expected to stay the same, at 4Mm³. SL
Other Related Stories
